All Singapore incorporated companies are required to appoint an auditor within 3 months from its date of incorporation unless it qualifies for an audit exemption by being classified as a small company.
To qualify as a small company, the criteria are as follows:
1) the company is a private company in the financial year in question; and
2) it meets at least 2 of the 3 following criteria for the immediate past two consecutive financial years:
For a company that is part of a group of companies:
1) the company must qualify as a small company; and
2) the entire group must be a "small group" to qualify for the audit exemption.
Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified.
A small company is disqualified if:
1) it ceases to be a private company at any time during a financial year; or
2) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.
If you require a statutory audit or a financial audit for your stakeholders, reach out to us so that we can help you with it!