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Singapore s Companies Registry steps up efforts to promote robust financial reporting and auditing practices.The Accounting and Corporate Regulatory Authority of Singapore (ACRA) has outlined certain initiatives in order to raise the quality of audits and enhance Singapore s position as a trusted financial and business hub.
According to ACRA, the public accountancy profession needs to enhance audit quality through the institution of internal quality control systems. Furthermore, public accountants are urged to exercise heightened vigilance and strive harder to keep up with changes in the business and professional landscape, including changes in clients needs and financial reporting standards.
The initiatives undertaken by ACRA to raise the quality of audits include the following: Issuing a guidance for audit-committees to help them better evaluate the quality of their auditors work; working in conjunction with the Institute of Certified Public Accountants of Singapore (ICPAS) to educate and prepare aspiring public accountants on their key responsibilities; recognizing talent who have international experience in the public accountancy profession; enhancing the Continuing Professional Education program for public accountants; and encouraging high quality corporate financial reporting. ACRA will also carry out a rigorous regulatory function of Singapore-based auditors and review public accountancy firms that are registered in the country.
With the phenomenal rise of Asia as the leading economic powerhouse, more entrepreneurs, MNCs, enterprises and investors are turning towards setting up a business in Asia. Singapore Company Incorporation is a popular choice owing to the ease of Singapore company setup, Singapore s tax system, strategic location, political stability, and talented workforce, among other factors. Corresponding with the increase in Singapore company registrations, Singapore s accountancy sector has witnessed robust growth in recent times. It is estimated that the industry has experienced an average growth rate of 5.7% between 2005 and 2009. There has also been a strong demand for Singapore s accountancy services on an international level. Singapore s accountancy sector accounts for 15% of the professional services industry s exports.
Given that businesses operate in an increasingly volatile, complex and challenging environment, the need for high-value add accountancy services cannot be emphasized enough. Auditing plays a vital role in ensuring the reliability and credibility of a company s financial information. Chief Executive of ACRA, Ms Juthika Ramanathan said,
Firms that have robust quality controls and dedicate sufficient resources to their auditing will be in a much stronger position to sustain high quality audits even in a changing business and professional environment.
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