Does my company need to be audited?

All companies need to be audited except for:

a)An exempt private company (EPC) with annual revenue of up to $5 million or less for financial years with effect from June 1, 2004 (or $2.5 million or less for financial years between May 15, 2003 and before June 1, 2004); and

b)A dormant EPC that does not have any accounting transactions (no business activities) for the financial year concerned or has not commenced business since incorporation.

An EPC is a private company where no be-neficial interest is held directly or indirectly by any corporation in its shares and which has not more than 20 members or shareholders.

Audit exemption removes the statutory burdens and costs on smaller businesses and provides an efficient and pro-business environment for small businesses.

The profit and loss accounts or consolidated accounts and balance sheet do not have to be audited and copies of an auditor's report do not have to be presented at the annual general meeting.

However, the Accounting and Corporate Regulatory Authority (Acra) may require the company to submit audited accounts and the auditor's report if the authority believes that there has been a breach of Section 199 of the Companies Act (relating to accounting records and system of control) and Section 201 of the Companies Act (relating to the accounts and director's reports) of the Act; or it is otherwise in the public interest to do so.

For more information, go to the Institute of Certified Public Accountants of Singapore's website: www.icpas.org.sg

This article was first published in The Straits Times.