Singapore Government Enhances the Quality of Auditing

Dec 19, 2013
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Singapore-GovernmentThe Accounting and Corporate Regulatory Authority (ACRA) Singapore has come up with specific measures to raise the overall standards of auditing and financial reporting, says one of the  renowned Singapore audit firms,

In an attempt to further bolster the reputation of Singapore as the financial & business hub of the world, Singapore’s regulatory body for accounting & auditing, ACRA has introduced certain key initiatives in order to enhance the quality of Singapore auditing. ACRA has also reiterated the importance of being in sync with the upgrades in modern day accounting & auditing standards.

Broadly, the measures undertaken by ACRA so as to improve the quality of auditing of audit firms in Singapore are enlisted below:

  • ACRA has issued certain guidelines to the audit committees (ACs) asking them to constantly monitor the work processes of auditors.
  • The regulatory body has decided to train the upcoming accountants & auditors about their core duties, by collaborating with ICPAS (Institute of Certified Public Accountants of Singapore).
  • ACRA has made it mandatory for the audit committees to give importance to the experience and skill set of the members of an audit team.
  • It has asked the audit committees to discuss the various audit related issues with the audit engagement partner – the senior most member of the audit team.
  • Additionally, ACRA has also made it compulsory for the audit committees to review if the auditor has exercised professional skepticism while preparing the audit reports.

Citing the need to have quality audit mechanism, Ms Juthika Ramanathan, the Chief Executive of ACRA went on to say, “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.”

These initiatives come in the backdrop of the emergence of cases globally, where companies have been found guilty of employing dubious audit practices. Also, the increasing number audit services providers in Singapore have prompted the government to tighten its noose around an audit company Singapore.