Compilation report by a professional firm will give you the assurance that the information is compiled with professional competence and due care.
Companies that are exempt from audit and filing requirement are still required to prepare a full set of financial statements (also known as a compilation report) including notes to the accounts and must be accompanied by the Directors’ Report and the Statement by Directors. This report must be prepared in compliance with the Singapore Financial Reporting Standards (“FRS”).
Companies that are exempted from audit requirements are not required to have their accounts audited. Instead, they prepare unaudited accounts (also known as a compilation report) for purposes of annual general meetings (AGMs) and filing with ACRA. If the Company chooses to have the accounts audited, it will then submit the audited accounts together with the auditor’s report.
The following companies are exempted from audit:
- Exempt private company (EPC) with revenue not more than S$5 million for the financial year starting on or after 1 June 2004; or
- Exempt private company (EPC) with revenue not more than S$2.5 million for the financial year starting on or after 15 May 2003 but before 1 June 2004; or
- Any company, including an Exempt private company (EPC), that is dormant for the financial year starting on or after 15 May 2003
An Exempt Private Company (EPC) is a private company which has at most 20 shareholders. No corporation holds (directly or indirectly) any beneficial interest in the EPC’s shares. It can also be a Company the Minister has gazetted as an EPC (see section 4(1) of the Companies Act).
