Audit Preparation in Singapore – What You Need to Know
Regardless of the size of your company, undergoing an audit in Singapore can be very challenging, most especially if you were unable to prepare for it. This process requires the thorough examination of all your financial records. Audit preparation is the key step to get through with this ordeal at the shortest possible time. However, if you use untrained employees to do the preparation, they might miss things that could harm or prolong the audit process.
Importance of Audit Preparation in Singapore
Audit preparation is a course of action that you need to undertake before the start of your annual audit. Here you have to make sure that all your documents and books are in order before an independent auditor arrives. In Singapore, strict compliance of auditing regulations is enforced. This means your company has to prepare well before the start of the audit process so that everything goes smoothly. It starts with submitting your accurate annual reports to the internal revenue authority in a timely manner. You don’t want to delay the submission of your audited financial statements with the auditor’s report because you will face sanctions that include hefty fines or even criminal conviction of your business directors and corporate secretary.
The Types of Preparation Needed for Audit
First, you need to identify the contact people of the departments that are under audit. The auditors may need to consult and talk to them to clarify things. If you hire an independent firm to do your audit preparation, they will be the one to entertain questions and provide explanations to the auditors.
Another type of preparation you need for the audit involves organizing and compilation of all work papers necessary in examining the company’s financial situation. These documents include business receipts, invoices, debt agreements, leasing contracts, correspondences, and other work-related materials. It’s also important to provide copies of all these documents to the auditor.
Lastly, you need to reconcile all account balances. This entails reviewing details of all bank records, accounts payable, accounts receivable, and other vital accounts.
The Need for Third Party Audit Preparation Service
Using your own staff to prepare for an audit may not be efficient, especially if they are untrained and far from being experts in the auditing field. If your company is not in the auditing business, it’s really not necessary for you to hire staff with auditing experience, more so if your company is relatively small. What you need is to hire a company that has the experience and knowledge about everything financial, including auditing preparation.
With a company like Orange Perspective Consulting preparing you for audit, you gain two things.
One, you save time. Hiring Orange Perspective Consulting would make the preparation process more efficient because its team already has a system in place to make faster and more accurate audit preparation. Its team of well-educated and expert accountants will ensure that when the government auditor arrives, all the requirements are sorted out and ready.
Two, you save money. For auditors to do their job well, they all need documents to be organized and ready before they arrive. If your files are in disarray or you are unable to give the things needed for a fast audit, the process will be prolonged. As a result, the auditor will need to spend more time waiting for you to produce the documents and papers that are needed. This means you end up paying a huge auditing fee. If you hire Orange Perspective Consulting at the onset, you can be assured of a worry-free and even costless audit process thanks to the company’s expert business solutions.