Company Statutory Financial Audit

In today’s fast-paced business environment, ensuring the accuracy and compliance of your financial statements is crucial. At Koh & Lim Audit PAC, we specialize in providing comprehensive Company Statutory Financial Audit services tailored to meet the needs of your business. Our commitment to excellence, precision, and integrity sets us apart as a trusted partner in safeguarding your financial health.

What is a Company Statutory Financial Audit?

A Company Statutory Financial Audit is a legally required examination of a company’s financial records, transactions, and statements to ensure they provide a true and fair view of the business’s financial position. This audit is conducted by an independent auditor who assesses the financial statements in accordance with established accounting standards and regulatory requirements.

Purpose of a Statutory Financial Audit

The primary objective of a statutory audit is to ensure transparency and accountability in a company’s financial reporting. It provides assurance to stakeholders such as shareholders, investors, government agencies, and lenders that the company’s financial statements are accurate and reliable.

Key purposes of a statutory financial audit include:

1. Compliance with Laws and Regulations – In many jurisdictions, including Singapore, companies must comply with statutory audit requirements under corporate law.
2. Accuracy and Fairness – Ensuring financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
3. Fraud Detection and Prevention – Auditors assess the company’s internal controls and financial records to identify any signs of fraud or financial mismanagement.
4. Investor and Stakeholder Confidence – A clean audit report strengthens trust among investors, creditors, and other stakeholders.
5. Tax and Financial Planning – Audited financial statements help in proper tax filings and strategic financial planning.

Who Needs a Statutory Audit?

In Singapore, statutory audits are mandatory for companies that exceed two out of three of the following criteria in the past two consecutive financial years:

• Annual revenue exceeding SGD 10 million.
• Total assets exceeding SGD 10 million.
• More than 50 employees.

Small and dormant companies that do not meet these thresholds are exempt from statutory audits under the Small Company Exemption framework.

Process of a Statutory Financial Audit

A statutory financial audit follows a structured process:

1. Planning and Risk Assessment

   • The auditor understands the company’s business operations, financial controls, and risk factors.
   • An audit strategy is formulated based on identified risks.

2. Gathering Evidence and Testing Controls

   • Auditors examine financial records such as ledgers, bank statements, invoices, and contracts.
   • Internal controls are tested to determine their effectiveness in preventing fraud or errors.

3. Verification of Financial Statements

   • The auditor checks the accuracy of key financial components such as revenue, expenses, assets, and liabilities.
   • Compliance with accounting standards is reviewed.

4. Audit Reporting

   • The auditor issues an audit opinion, which can be:
     • Unqualified (Clean) Opinion – No material misstatements.
     • Qualified Opinion – Some issues found, but financial statements are largely accurate.
     • Adverse Opinion – Financial statements do not represent a true and fair view.
     • Disclaimer of Opinion – Auditor unable to express an opinion due to limitations.

5. Submission and Compliance

   • The audited financial statements are submitted to relevant authorities, such as the Accounting and Corporate Regulatory Authority (ACRA) in Singapore.

Importance of a Statutory Audit

• Ensures Corporate Governance – Strengthens accountability and regulatory compliance.
• Improves Financial Credibility – Helps companies gain investor confidence and secure financing.
• Detects Errors and Fraud – Identifies financial irregularities before they become serious problems.
• Supports Tax Compliance – Helps ensure accurate tax filing and reporting.

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Why Choose Koh & Lim Audit PAC?

1. Expertise and Experience: With years of experience in the field, our team of certified public accountants and auditors brings extensive knowledge and expertise to every audit engagement. We understand the complexities of various industries and tailor our approach to meet the unique needs of your business.
2. Compliance and Accuracy: We are committed to ensuring that your financial statements comply with all relevant laws, regulations, and standards. Our meticulous approach guarantees that your financial records are accurate, comprehensive, and transparent.
3. Customized Solutions: Every business is unique, and so are its auditing needs. We provide customized audit solutions that align with your specific requirements and business goals. Our personalized service ensures that you receive the attention and detail necessary for a thorough audit.
4. Timely and Efficient: We understand the importance of timely financial reporting. Our efficient audit processes are designed to minimize disruptions to your operations while delivering high-quality results within agreed timelines.
5. Confidentiality and Integrity: We uphold the highest standards of confidentiality and integrity in all our engagements. You can trust us to handle your financial information with the utmost care and professionalism.

Our Audit Process

1. Initial Consultation: We begin with an in-depth consultation to understand your business, its operations, and specific audit requirements. This helps us tailor our audit plan to your unique circumstances.
2. Planning and Risk Assessment: Our team conducts a thorough planning and risk assessment to identify key areas of focus and potential risks. This step ensures that our audit is both comprehensive and efficient.
3. Fieldwork and Data Collection: During the fieldwork phase, we collect and analyze financial data, review internal controls, and perform substantive testing. Our auditors work closely with your team to gather the necessary information while minimizing disruptions to your business.
4. Reporting and Review: After completing the fieldwork, we prepare a detailed audit report outlining our findings, conclusions, and recommendations. We review the report with you to ensure clarity and address any questions or concerns.
5. Follow-Up and Support: Our commitment to your business doesn’t end with the audit report. We provide ongoing support and follow-up to help you implement our recommendations and improve your financial processes.

Benefits of a Statutory Financial Audit

• Enhanced Credibility: A statutory financial audit enhances the credibility of your financial statements, building trust with investors, creditors, and other stakeholders.
• Regulatory Compliance: Ensure compliance with regulatory requirements and avoid potential penalties and legal issues.
• Improved Financial Management: Identify areas for improvement in your financial processes and controls, leading to better financial management and performance.
• Risk Mitigation: Detect and mitigate financial risks early, protecting your business from potential losses and fraud.

At Koh & Lim Audit PAC, we are dedicated to providing top-notch affordable corporate statutory financial audit services that support your business’s growth and success. Contact us today to learn more about how we can help ensure the accuracy, compliance, and integrity of your financial statements and affordable company statutory financial audit services Singapore.

Company Statutory Financial Audit