The Accounting and Corporate Regulatory Authority of Singapore ACRA has published findings following its last annual review and inspections of audit firms in Singapore. Whereas an improvement has been noted, generally, smaller audit firms and non-listed companies have issues.
Larger auditing firms were seen to have successfully worked with more focus to ensure the quality of their audits. Smaller firms were reported as having “recurring audit deficiencies in areas such as revenue recognition fair value measurements and construction contracts”.
The authority has been stating that it seeks further improvements in transparency and disclosures in financial reporting by companies. This statement for improved audits clearly runs in parallel with this aim, following the recent findings by ACRA. The regulator has identified some repetitive audit deficiencies, that they are not prepared to accept. New enforcement measures are to be considered.