All you need to know about Audit Preparation in Singapore

Many business owners and their employees dread the annual statutory audits. However, a yearly audit is an irreplaceable tool that ensures that your financial procedures are in order despite the hassle. While correctly audited financial statements in Singapore attract good rating both from ACRA and potential investors, an erroneous and inaccurate annual audit may result in heavy penalties and impacting current/potential investor from joining the business. 

The solution to making the audit process more efficient would be to prepare well. Companies that are well prepared ahead of time and have established well-placed procedures to support their auditors have gained plenty. To help your organization to do the same, here are some tips for audit preparation in Singapore. By following these tips, you will have a more efficient, accurate and successful audit done for your company. 

1 Inform company key personnel about audit dates and items of priority

The solution to making the audit process more efficient would be to prepare well. Companies that are well prepared ahead of time and have established well-placed procedures to support their auditors have gained plenty. To help your organization to do the same, here are some tips for audit preparation in Singapore. By following these tips, you will have a more efficient, accurate and successful audit done for your company.

2 Organise and compile all required documents

Audit firms in Singapore in business for years express that one of the most common issues when conducting an audit in Singapore is a disorganized and improper compilation of supporting documents. When an auditor asks for one or the other kind of documents, it could not be located or is not available in a compiled form. More time and effort can be saved if the documents needed are organized and assembled in advance. The best way to organize and compile these documents is to have soft copies of them. The pandemic has triggered the need for most companies to transform their operations to be “Work-from-Home efficient”, one great example is migrating paper documents to the cloud.

3 Reconcile all account balances

Unmatched account balance and missing entries are the most common reasons why erroneous financial statements happen. Therefore, before the audit begins, you must reconcile detail to general ledger account totals and the detailed listing. For example, reconciling all your bank accounts, accounts receivable, accounts payable and equipment lists. Also, ask the auditor in advance to provide templates, copies of previous documents provided so that you can prepare information in a format that is acceptable to the auditor.

When your organization is well-prepared for the audit in advance, you and your auditors are more likely to discover more ways to improve efficiency and minimize errors. Although the audit may be disruptive and intrusive in your company's operations at times, your cooperation in supplying the needed information will contribute significantly to the speed, accuracy, and experience of the audit process.