What to Expect During an Audit: A Guide for Singapore Businesses

Audits are a key part of maintaining financial transparency and regulatory compliance for businesses in Singapore. Understanding the audit services process can help companies prepare and ensure a smooth experience. Here’s what to expect during an audit.

1. Pre-Audit Preparation
Before the audit begins, the audit firm will request relevant documents such as financial statements, tax records, and accounting ledgers. Companies should ensure these records are complete, accurate, and properly organized. Good bookkeeping practices make this step much easier.

2. Initial Meeting
Auditors typically start with a meeting to understand the nature of the business, its operations, and key financial practices. This initial discussion helps the auditors identify areas of focus and potential risk factors for deeper examination.

3. Review of Financial Records
The audit team will then review the company’s financial statements and supporting documentation. This review ensures compliance with Singapore Financial Reporting Standards (SFRS) and other regulations. Auditors may also verify transactions and assess internal controls to identify any weaknesses.

4. Communication of Findings
During the audit, the auditors will communicate any issues or discrepancies they find. This ongoing dialogue gives the business a chance to clarify or resolve any concerns in real-time.

5. Final Report
Once the audit is complete, the auditors will issue a report that details their findings. This report will either assure that the financial statements are accurate or highlight any areas that require attention or correction.

By preparing properly and understanding the process, businesses can ensure a smoother, more efficient audit experience.