Singapore Company Annual Report Audit Required Rules and Guidelines

Singapore, as a global financial and business hub, has a rigorous and transparent annual audit system, which is an essential part of corporate compliance. In recent years, with the changes in the global economic environment and the enhancement of regulatory requirements, Singapore has increasingly emphasized the importance of annual audit for companies. According to the regulations of the Accounting and Corporate Regulatory Authority ACRA, all companies registered in Singapore must submit their annual financial statements on time and undergo an audit. This article combines recent news to provide a practical guide on annual audits in Singapore, helping companies complete the audit process efficiently while ensuring compliance.

In 2025, Singapore continues to strengthen its supervision over corporate financial reporting. According to The Straits Times, ACRA issued a new notice in June 2025, emphasizing the accuracy and timeliness of annual audits. It pointed out that some companies have delayed or incomplete submission of financial data. The authority stated that it will increase the frequency of spot checks and impose stricter penalties on violators.

First, companies need to understand the basic requirements of annual audits. According to the Singapore Companies Act, both private limited companies and public limited companies must submit Annual Returns to ACRA after the end of each financial year. For listed companies, they also need to submit Audited Financial Statements, which must be reviewed by a certified public accounting firm.

Second, companies should be aware of the different audit requirements for various types of businesses. For example, small companies may apply for audit exemptions, provided they meet certain financial criteria. According to ACRA's regulations, if a company's annual revenue does not exceed S$1 million and its total assets do not exceed S$5 million, it can apply for exemption from mandatory audits. However, this exemption applies only to unlisted companies and must be clearly stated in the annual report.

Companies should also pay attention to the selection of auditors. According to the Auditor's Regulations, auditors must have the necessary qualifications and licenses, and they must not have any conflicts of interest with the audited company. In recent years, ACRA has strengthened its review of auditor qualifications to ensure audit quality. In July 2025, ACRA announced investigations into three local accounting firms due to inaccurate information in their audit reports. This incident raised concerns about audit quality and prompted more companies to be cautious when selecting audit firms.

In practice, companies can complete the annual audit through the following steps

1. Prepare financial data Companies should organize and verify their financial records before the end of the fiscal year to ensure all transactions are correctly recorded.

2. Hire an auditor Companies should choose an auditor certified by ACRA to ensure they have the proper qualifications.

3. Conduct the audit The auditor will examine the company’s financial statements to confirm their accuracy and compliance.

4. Submit the annual report After the audit is completed, the company must submit the annual report through ACRA's online system, along with the audit report.

5. Keep records Companies should properly keep all financial and audit documents for future reference or regulatory inspections.

Notably, in recent years, Singapore has actively promoted digital transformation, and many companies have started using electronic methods for financial management and auditing. For example, ACRA's e-Submission system allows companies to submit annual reports online, greatly improving efficiency. Some companies have also introduced blockchain technology to enhance the transparency and security of financial data.

At the same time, companies should pay attention to changes in International Financial Reporting Standards IFRS. In 2025, the International Accounting Standards Board IASB issued a series of new financial reporting standards, covering areas such as revenue recognition and lease accounting. These changes may affect the way companies prepare their financial statements, so companies should closely monitor these developments and adjust their financial policies when necessary.

Finally, companies should establish a sound internal audit mechanism and conduct regular financial self-audits to reduce audit risks. According to a survey by the Institute of Accountants of Singapore IAAS, companies with strong internal control systems have significantly lower chances of problems during audits compared to others.

In conclusion, Singapore's annual audit system is becoming increasingly mature. For companies to maintain compliance and steady development in a competitive market, they must strictly follow relevant regulations and make full use of modern technology and professional resources to ensure smooth annual audit processes. As the regulatory environment continues to change, companies should continuously learn and adapt to face future challenges.