Running a company in Singapore involves more than just managing daily operations—it requires staying compliant with statutory requirements. One of the key aspects of compliance is the Company Statutory Audit, a mandatory process for many businesses. This audit ensures that financial statements reflect a true and fair view of a company’s financial position.
At Tan, Chan & Partners, we understand that audit season can be stressful for business owners. Our goal is to help companies simplify the process with practical guidance and expert advice. With the right preparation and professional support, any business can ensure a smooth and stress-free Company Statutory Audit experience in 2025.
Understanding the Purpose of a Company Statutory Audit
A Company Statutory Audit is an independent examination of a company’s financial statements, conducted by qualified auditors. The goal is to determine whether the accounts are prepared in accordance with Singapore Financial Reporting Standards (SFRS) and accurately represent the company’s performance.
In Singapore, statutory audits are regulated by the Accounting and Corporate Regulatory Authority (ACRA). They are mandatory for companies that exceed the audit exemption criteria—specifically, those that meet at least two of the following conditions:
Total annual revenue exceeds SGD 10 million.
Total assets exceed SGD 10 million.
The company has more than 50 employees.
For these companies, preparing for a Company Statutory Audit is not just a compliance step—it’s a crucial part of maintaining corporate integrity and trust with stakeholders.
Why Preparing Early Matters
Audit preparation shouldn’t begin a week before submission deadlines. Early preparation saves time, reduces errors, and ensures transparency. Companies that plan ahead are less likely to face issues such as missing documentation or inaccurate data.
Tan, Chan & Partners recommends beginning the audit preparation process at least three months before your financial year-end. This allows time for internal review, reconciliation of accounts, and identification of discrepancies before auditors arrive.
Early preparation also demonstrates professionalism and reliability—qualities that auditors appreciate when assessing compliance and reporting standards.
Step-by-Step Guide to a Smooth Company Statutory Audit
1. Maintain Accurate and Organized Financial Records
Your financial records form the foundation of any audit. Ensure that all transactions are properly recorded, reconciled, and supported by documentation. This includes invoices, receipts, payroll records, and bank statements.
Digital accounting systems can simplify this process by centralizing financial data. Tan, Chan & Partners often advises clients to adopt cloud-based accounting platforms that allow seamless data access and reduce manual errors.
2. Review Internal Controls
A company’s internal control system safeguards against fraud and ensures accuracy in financial reporting. Before the audit, review your control mechanisms. Check how cash transactions, approvals, and expense claims are managed.
If internal controls are weak or outdated, auditors may flag them as risks. A professional pre-audit review can help strengthen your controls and reduce compliance risks.
3. Reconcile Accounts Regularly
Reconciliation ensures that your accounting records match external statements—such as bank records or supplier invoices. Any inconsistencies can delay the audit process.
Tan, Chan & Partners emphasizes the importance of monthly reconciliation. It helps companies maintain real-time accuracy, making audit preparation far smoother when the time comes.
4. Prepare Supporting Documents
Every number in your financial statements must be supported by documentation. Gather all contracts, invoices, receipts, and statutory filings. When documents are easily accessible, auditors can verify figures quickly, reducing the overall audit time.
5. Conduct a Pre-Audit Review
A pre-audit review allows you to identify potential red flags before the actual audit. It’s essentially a “mock audit” where experts assess your readiness and highlight issues that need attention.
At Tan, Chan & Partners, our audit professionals perform detailed pre-audit checks to ensure all client accounts meet ACRA’s and IRAS’s requirements, minimizing surprises during the final audit.
6. Communicate with Your Auditor
Transparent communication with your auditor is key to a successful Company Statutory Audit. Clarify expectations early, share necessary documents promptly, and respond to audit queries without delay.
Maintaining open communication builds trust and helps resolve potential discrepancies efficiently.
7. Stay Updated on Regulatory Changes
Singapore’s financial regulations evolve regularly. Companies must stay informed about the latest ACRA and IRAS guidelines. Working with experienced auditors like Tan, Chan & Partners ensures your company remains aligned with the latest reporting standards.
Common Mistakes That Complicate Audits
Even well-managed companies can face difficulties during audits. Some common issues include:
Incomplete documentation or missing receipts.
Inaccurate account reconciliations.
Late adjustments to financial statements.
Lack of clear audit trail in accounting systems.
Failure to implement auditor recommendations from previous years.
Avoiding these pitfalls requires discipline and proactive management. Regularly reviewing your accounting practices helps ensure continuous compliance.
The Role of Professional Auditors in a Smooth Audit Process
Partnering with a professional audit firm can make a significant difference. Experienced auditors understand the nuances of Singapore’s financial regulations and guide companies through every step of the process.
Tan, Chan & Partners has a team of qualified auditors specializing in Company Statutory Audit services. The firm provides a structured audit process designed to minimize disruption while ensuring full compliance.
Their approach includes:
Reviewing internal controls for efficiency.
Conducting independent financial assessments.
Preparing detailed audit reports with actionable insights.
Offering recommendations for future financial improvement.
This professional oversight not only ensures compliance but also enhances financial transparency, which is crucial for investors, partners, and stakeholders.
Benefits of a Well-Executed Statutory Audit
A successful statutory audit offers multiple advantages beyond compliance:
Builds Stakeholder Confidence – Audited financial statements enhance credibility and transparency.
Improves Financial Accuracy – Auditors identify discrepancies and suggest improvements for better reporting.
Supports Decision-Making – Audit reports provide valuable insights into financial performance.
Prevents Legal Issues – Staying compliant avoids penalties or legal complications.
Attracts Investors – Investors trust companies that undergo regular statutory audits and maintain transparent records.
A properly conducted audit can be a strategic tool for growth, not just a legal formality.
Why Choose Tan, Chan & Partners for Your Audit
Tan, Chan & Partners is one of Singapore’s most trusted audit firms, known for accuracy, integrity, and personalized service. With extensive experience across various industries, the firm delivers professional Company Statutory Audit services that go beyond standard compliance.
Clients choose Tan, Chan & Partners for:
Expertise in Singapore’s accounting and audit standards.
Transparent communication and quick turnaround times.
Cost-effective, high-quality audit solutions.
A client-first approach that focuses on practical guidance.
Every audit engagement is handled with precision and professionalism, ensuring that your business not only meets regulatory requirements but also gains valuable insights into its financial health.
Preparing for 2025: Future-Ready Audit Practices
As technology continues to evolve, so does the audit landscape. Companies should embrace digital accounting tools and automated compliance tracking systems.
Tan, Chan & Partners stays ahead by integrating advanced data analysis and AI-assisted audit methods, ensuring accuracy, efficiency, and data security. Businesses that adopt these modern practices will find statutory audits in 2025 and beyond significantly smoother and faster.
Conclusion
A Company Statutory Audit doesn’t have to be stressful. With proper preparation, organized financial records, and professional guidance, the process becomes seamless and beneficial.
Tan, Chan & Partners is committed to helping businesses in Singapore maintain compliance with confidence. Their audit experts combine technical excellence with personalized service, ensuring that your company’s statutory audit experience in 2025 is smooth, efficient, and insightful.
For reliable, accurate, and transparent audit solutions, partner with Tan, Chan & Partners—your trusted audit firm in Singapore.
FAQs
1. Who is required to undergo a Company Statutory Audit in Singapore?
Companies that exceed the audit exemption thresholds—based on revenue, assets, or employee count—must undergo a statutory audit as per ACRA regulations.
2. How can I prepare my company for a statutory audit?
Keep accurate financial records, reconcile accounts regularly, and work closely with professional auditors to identify and resolve issues early.
3. How long does a Company Statutory Audit take?
The duration depends on the company’s size and complexity. Typically, audits take two to four weeks when records are well-organized.
4. Why should I choose Tan, Chan & Partners for my audit?
Tan, Chan & Partners offers expert statutory audit services, timely reporting, and clear communication, ensuring compliance and peace of mind for Singapore businesses.
