Many students in Singapore pursue a degree in accounting, with some exposure beginning as early as secondary school. Subjects like Principles of Accounting, offered at O and A levels, lay the groundwork for understanding financial systems, data recording, and the importance of accurate records in any business. These foundations allow learners to gradually transition into advanced topics such as audit and corporate management.
As students progress, they encounter the three golden rules of accounting, followed by more complex topics that deal with assurance and compliance. One of the most important areas is auditing, a discipline that examines processes, controls, and the accuracy of information provided by accountants. The purpose of an audit is not only to detect potential fraud but also to ensure that organisations are following established standards and legal regulations.
For those moving into tertiary education or considering a career, auditing can appear challenging. It involves evaluating an organisation’s records and reporting systems, requiring students to master both theory and application. Many universities treat it as a standalone subject, and several professional pathways demand proficiency in this field. Those training to become an auditor must also understand how reporting ties into broader financial and corporate frameworks.
The role of an auditor is unique because it demands independent judgment. Whether within the public sector or private firms, auditors form an opinion on the accuracy of financial reports based on reliable data and established processes. The work requires knowledge of different types of audits, from statutory compliance checks to specialised assurance services. Each audit must be carefully documented, as the report produced has significant weight for corporate decision-making and management.
In Singapore, international networks and local accountants provide a wide menu of professional services ranging from risk assessment to corporate reporting. Firms uphold rigorous standards to meet the expectations of regulators, boards, and even international bodies like the IRS. Whether examining corporate financials or supporting operational improvements, auditing strengthens trust and improves organisational processes.
Ultimately, auditing is about ensuring accuracy, building assurance, and providing clear, reliable information for decision-making. If you are about to study this subject or start a professional journey as an auditor, understanding its purpose, process, and reporting requirements will prove invaluable. To deepen your foundation before diving into auditing, explore the Basics of Accounting
for a clearer understanding of how it all begins.
What is Auditing?
In simple words, auditing is the checking of financial statements and accounts by a third party. This might seem simple enough, but it is far from the truth.
An auditor must have the proper knowledge, skill, and code of ethics to ensure that their client’s accounting records are correct and aligned with the requirements of a country’s accounting standards and regulatory bodies.
In general, most people will encounter three kinds of audits: external audits, internal audits, and audits by IRAS (Inland Revenue Authority in Singapore).
These three audits are separate and different. Let’s examine them in more detail below.
External Audits
External audits are independent audits done by a third party hired by a company. The main reason external audits are conducted is to ensure that a company is in compliance with the necessary regulatory bodies within the country. External auditors provide reasonable assurance that a company is preparing their financial statements correctly and that they do not have any material misstatements that can affect the decisions of the final users of their financial statements. In short, an external auditor is responsible for checking if a company’s financial statements are true and fairly presented and ensuring that they are aligned with the rules set out by accounting and governmental bodies.
Internal Audits
Internal auditors are employed within the company, as opposed to external auditors who are hired from outside the company. They are a department within an organisation whose role is to ensure that the company and its departments are compliant with the policies set out by management. These policies include financial and legal laws and regulations. Internal auditors examine the departments and policies within the organisation and produce a report with recommendations for management improvements.
Tax Audits
Tax audits are different from internal and external audits because the relevant government agency carries them out. The Inland Revenue Authority of Singapore (IRAS) is responsible for conducting tax audits in Singapore. According to the IRAS website, there are three main reasons for tax audits.
- Ensuring that business taxes submitted are compliant with Singaporean tax laws
- To educate businesses on their tax obligations and provide assistance.
- To identify processes, policies and tax laws that can be simplified or clarified
Unlike external and internal audits, which happen quite often, tax audits are not required for all businesses and companies. Instead, they are based on risk-based assessments conducted by IRAS. These companies are selected based on the assessment and checked to ensure that they are in compliance with the tax regulations.
Why is Auditing Important?
Submission of company audit reports to governmental agencies is essential. However, certain companies do not need to be audited because they are exempted. For example, according to the Companies (Amended) Act 2014, three criteria for audit exemption were introduced, which are;
- Annual revenue must be less than 10 million
- Assets must be less than 10 million
- Full-time employees must be fewer than 50 people.
If a company meets these three requirements, it is exempt from audit but must still submit its financial statements to ACRA (Accounting and Corporate Regulatory Authority).
You might wonder why auditing is important. It is easy for companies to manipulate and falsely present their financial statements. This act is called creative accounting, and it is illegal and unethical. When people think of creative accounting, they think of companies increasing their profits to falsely present growth, but there are also companies that purposely under-recognise profits; this can be for many reasons, one of them being tax evasion. This is where the audit plays a vital role.
The primary purpose of an audit is to verify that a company’s financial statements are accurate and presented in a fair manner. They ensure that the statements are free from material misstatements, which will help users such as lenders, governmental agencies, debtors, banks, and even investors make sound decisions.
Types of Auditing Services Singapore Firms Provide
Singapore has positioned itself as a global financial hub, and with that comes the responsibility of ensuring that businesses meet high governance and compliance expectations. Beyond statutory requirements, firms in Singapore offer a wide menu of audit services designed to improve transparency, detect fraud, and strengthen internal controls. These services cater to different types of organisations, ensuring both public and private entities can operate with confidence.
Key Audit Services Beyond the Basics
- Forensic Audits: Forensic audits are highly specialised investigations carried out when there is suspicion of financial irregularities or fraud. They require expert accountants who can examine financial data, identify inconsistencies, and provide a clear report. This form of audit often results in legal proceedings, as the opinion of the auditor may be used in court to establish whether misconduct has taken place within an organisation.
- Compliance Audits: These audits review whether a company is following the relevant processes, regulations, and contractual obligations. In Singapore, compliance audits often extend to industries such as finance, healthcare, and technology, where regulatory oversight is strict. Firms may also need to demonstrate adherence to international standards, including frameworks recognised by the IRS or other cross-border authorities. Compliance audits confirm that an organisation does what is required under the law and industry codes.
- Operational Audits: Operational audits focus on how efficiently a company’s day-to-day work is carried out. Rather than solely examining numbers, these audits evaluate whether resources are being utilised effectively to achieve business objectives. By highlighting weaknesses in processes and suggesting improvements, operational audits give management actionable insights into how the organisation can enhance productivity and reduce waste.
- Information Systems (IT) Audits: With Singapore’s push towards digitalisation, IT audits have become increasingly important. These audits assess the controls surrounding computer systems, data security, and information management. Given that businesses handle vast amounts of sensitive data, IT audits verify whether systems are reliable, secure, and aligned with regulatory requirements. A comprehensive IT audit helps an organisation protect itself against cybersecurity threats while ensuring accurate financial reporting.
- Performance and Sustainability Audits: Some firms also provide performance audits, which evaluate whether programmes and projects deliver intended results. Increasingly, sustainability audits are gaining traction in Singapore, reflecting global concerns about environmental, social, and governance (ESG) matters. These audits not only improve accountability but also shape how a company is viewed by the public and investors.
According to the Accounting and Corporate Regulatory Authority (ACRA) of Singapore, statutory audits and assurance services are critical because they enhance investor confidence and promote financial transparency, which directly contributes to Singapore’s reputation as a trusted global business hub.
Why These Services Matter
Each of these auditing types addresses specific needs within the business landscape. Forensic audits safeguard against financial misconduct, compliance audits ensure regulatory alignment, operational audits enhance efficiency, IT audits protect critical data, and sustainability audits improve accountability to stakeholders. Together, they provide organisations with comprehensive assurance that their financial and operational structures are functioning as they should.
Connecting Services to Careers
For students and young professionals, exposure to these diverse services is invaluable. Specialising in one of these fields allows individuals to gain expertise in areas such as digital risk management, corporate governance, or forensic investigation. If you are considering an entry point into this profession, it is worth exploring more regarding the career paths available in accounting, as many roles within auditing serve as a foundation for broader opportunities in consultancy, compliance, and leadership.
| Type of Audit | Main Purpose | Who Benefits Most |
|---|---|---|
| Forensic Audit | Investigates fraud, misconduct, or financial irregularities | Legal teams, regulators, corporate boards |
| Compliance Audit | Confirms adherence to laws, regulations, and standards (e.g. IRS) | Regulated industries, multinational corporations |
| Operational Audit | Reviews efficiency of processes and daily work | Management, operations, and strategy teams |
| Information Systems (IT) Audit | Evaluates IT controls, cybersecurity, and data reliability | Organisations handling sensitive data |
| Performance & Sustainability Audit | Assesses project outcomes and ESG accountability | Investors, public, and stakeholders |
Auditing services in Singapore go far beyond statutory obligations. They cover investigative work, regulatory processes, and technological risk management, all of which are vital to the resilience of modern organisations.
Whether producing a detailed report, giving an opinion on corporate controls, or preventing fraud, auditors ensure that companies maintain integrity and transparency. By understanding these services, both organisations and individuals can appreciate how audits contribute to sustainable business growth in a complex regulatory environment.
Top Auditing Firms in Singapore: An Overview
Auditing firms play a vital role in Singapore’s financial and business ecosystem by providing assurance on the accuracy of financial statements and the effectiveness of internal controls. The country is home to both globally recognised firms and reputable local organisations, offering a broad spectrum of services to meet the needs of businesses across industries. These firms are often sought after not just for compliance, but also for their strategic insights into governance, risk, and regulatory requirements.
- The Big Four Firms: Deloitte, PwC, EY, and KPMG dominate the auditing landscape in Singapore. Their global reach, extensive resources, and established reputations make them the preferred choice for large multinational corporations. These firms provide not only statutory audits but also advisory, tax, and risk management services, giving clients a comprehensive service menu tailored to complex organisational needs.
- Mid-Tier Firms: Alongside the Big Four, mid-tier firms such as BDO, RSM, and Crowe Singapore have carved out a strong presence. These firms are known for offering high-quality audit work with more personalised engagement, making them attractive to medium-sized enterprises and rapidly growing businesses. They often combine international standards with local expertise, helping clients remain compliant while focusing on practical growth strategies.
- Local Firms: Singapore also hosts a range of respected local auditing organisations. These firms provide accessible and affordable services, particularly to small and medium enterprises (SMEs). Their strength lies in local market understanding, cultural familiarity, and flexibility in responding to the unique needs of domestic businesses.
In conclusion, the auditing profession in Singapore is diverse, ranging from global giants to local specialists. For businesses, the choice of auditor depends largely on scale, industry, and the type of services required. Developing this strong professional base often begins with graduates from top accounting universities in Singapore, which continue to supply the industry with skilled talent. Whether seeking global perspectives, mid-tier adaptability, or local expertise, Singapore’s auditing firms offer dependable assurance in a highly regulated environment.
Auditing vs Accounting: Key Differences Explained
The terms auditing and accounting are often used interchangeably, but they serve very different purposes within financial management. Accounting is concerned with recording, classifying, and summarising transactions, while auditing provides an independent review of those records. Understanding the differences helps businesses, regulators, and professionals identify how each contributes to organisational trust and decision-making.
Comparison of Auditing and Accounting
Auditing
- Focuses on evaluating the accuracy and fairness of financial statements prepared by accountants.
- Provides an independent opinion on whether financial reports comply with standards and regulations.
- Conducted periodically, usually annually, to detect errors, irregularities, or potential fraud.
- Relies heavily on analytical review, testing of controls, and examination of supporting documents.
- Primarily intended for external stakeholders such as investors, regulators, and the public.
Accounting
- Involves preparing and maintaining financial records that reflect the company’s daily transactions.
- Ensures compliance by applying established accounting principles and frameworks consistently.
- Performed continuously throughout the financial year as part of routine business operations.
- Relies on systematic processes of recording, measuring, and reporting financial data.
- Primarily intended for internal management, shareholders, and other decision-makers.
While accounting lays the foundation by systematically capturing and reporting financial data, auditing builds confidence in that information by verifying its reliability. Together, they create a cycle of transparency that supports both corporate governance and public trust. For professionals interested in advancing within either pathway, obtaining one of the best accounting certifications in Singapore can provide the credibility and expertise needed to succeed.
What Does a Career in Audit Look Like?
One of the best starting points when you start your career in accounting is auditing. One of the main reasons why most students start in audit and then move on to other roles is that auditing gives them an overview of the inner workings of a company. You also gain experience auditing multiple companies in various industries as an auditor. You get to learn and accumulate precious knowledge that will be key in all other roles you might pursue, whether in a commercial company or an accounting firm. On top of the precious technical skills you will learn, since the role of auditing requires a lot of communication and dealing with clients, you will also improve your general communication skills, which is a valuable transferable skill to have.
The average salary for an auditor in Singapore typically ranges from S$4,000 to S$5,000 per month. However, this figure can vary based on factors such as the individual’s position within the company, their specific skills, and the industry in which they work. As auditors gain more experience and expertise, their earning potential generally increases. Auditors are also in demand all over the world, so if you choose this career path, you can move to other countries as well.
How to Score in Your Audit Examination Paper?
If you have an audit subject examination coming up, you might want to know the best strategies for learning and scoring on this paper. Unlike many other accounting subjects, audit subjects tend to be more theory-based than computational. An integral part of learning to audit is understanding and mastering accounting standards. You will also need to know about risk assessments, audit executions, audit planning and many more.
Since this subject is mainly a theory subject, you should use tools such as mind maps to help you understand the topics that will be covered in your examination. Mind maps are an incredibly valuable tool for studying because they provide a comprehensive and visual representation of a topic. This visual overview allows for a deeper understanding and a broader perspective, making it easier to grasp complex concepts and relationships between different pieces of information.
Another thing you should do to help you score is familiarise yourself with the technical terms and key terms. This will help you in your examination, as it is pretty impossible to remember everything, but these technical terms will help you remember more easily.
An age-old rule for all subjects, not just audits, is to attempt as many practice and past-year examination questions as possible. One of the main reasons this is important is that it helps you prepare yourself for the actual examination. The questions will give you an insight into what will be asked and how examiners tend to pose their questions. This allows you to learn what is required to score well.
A tutor can really help if you are a person who is sitting for your O-level, A-level, degree or even professional accounting paper. If you struggle to understand or find it hard to grasp what you are learning, consider hiring a Superprof tutor. Our tutors are highly skilled and experienced, and our team verifies them.
When you hire a Superprof tutor, you can benefit from the flexibility it offers, allowing you to schedule your lessons at convenient times. As a student, you will most probably have a very tight schedule. If you are a professional student, more often than not, juggling studying while working and making the time to study can be a huge challenge. This is where our tutors come in. You get to arrange the time for your lesson based on your schedule, which is very important if you want to succeed in your studies and obtain the qualifications needed. On top of these, you also have the option to have face-to-face or virtual lessons. All these are based on your comfort.
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