Small Company Concept for Audit Exemption

With the Small Company Concept implemented by ACRA, a company whose financial years beginning on or after 1 Jul 2015 can still be exempted from audit even though it is not an exempt private company.

This concept has further increased the threshold for a company having to be audited.

Despite this, business owners have go ahead with its accounts to be audited as it view this as an investment due to numerous advantages.

A company may be more ready to get finance if its financial statements have been audited. Financial statements that have been audited tend to create the impression that a company is reliable and genuine. As a result, the likelihood that the company will receive financing rises, giving it more credibility in the eyes of potential investors.

Bankers will require financial statements to be audited for loan processing as the company will need to comply with the banking requirements for covenants.

Source: https://www.acra.gov.sg/legislation/legislative-reform/companies-act-reform/companies-amendment-act-2014/two-phase-implementation-of-companies-amendment-act-2014/more-details-on-small-company-concept-for-audit-exemption