Is auditing compulsory or mandatory in Singapore?

Companies that are regarded as a “small company” for a particular financial year, or are dormant, are exempt from audit requirements. These companies therefore do not need to appoint auditors (or have their financial statements audited) for that financial year.

However, certain nature of businesses require the mandatory auditing regardless of the size. Eg: Travel Agencies.

Exception to exemption from audit requirements:

Even if a company is exempt from audit requirements, the Registrar may still require the company to lodge its audited financial statements and an auditor’s report if the Registrar is satisfied that the company has breached laws relating to the:

• Keeping of accounting records (section 199 of the CA); or
• Laying of its financial statements at its AGM (section 201 of the CA).