Audit is an extra burden on any business, although a necessary procedure in some cases. For example, if a company is granted a credit by a bank, or acquired or sold by an independent party. In most cases, however, it is only associated with extra costs that all businessmen try to avoid by any means.
In view of this, Singapore authorities took the decision to meet the needs of small businesses and release them from mandatory annual audit. The key criterion is offshore companies’ annual turnover. Businesses with a turnover of more than S$10m are subject for the annual audit and submission of audited accounts together with the annual statement and XBRL-report.
Singapore offshore companies with any subsidiaries incorporated must draft consolidated statements and conduct their audit, if needed.