Singapore

The statutory framework for corporate financial reporting and audit in Singapore is primarily set out in the Companies Act 1967 and the Accounting Standards Act 2007, as amended by the Accountancy Functions (Consolidation) Act 2022. Under the Companies Act, companies are required to keep proper accounting records and prepare financial statements that comply with the applicable accounting standards and present a true and fair view. With effect from 1 April 2023, the Accounting Standards Committee, under the Accounting and Corporate Regulatory Authority, is responsible for making or formulating accounting standards for companies, charities, co-operative societies, and societies in Singapore.

The Accounting Standards Committee issues Singapore Financial Reporting Standards (International), Financial Reporting Standards, the Singapore Financial Reporting Standard for Small Entities, and the Charities Accounting Standard. Singapore Financial Reporting Standards (International) are required for Singapore-incorporated and foreign companies listed on the Singapore Exchange, registered business trusts that were reporting under Financial Reporting Standards, and entities lodging a prospectus for the issue of equity or debt instruments for trading on the Singapore Exchange. Financial Reporting Standards continue to apply to other Singapore-incorporated companies unless they elect or are required to apply Singapore Financial Reporting Standards (International). The Singapore Financial Reporting Standard for Small Entities is available to eligible non-publicly accountable small entities, while eligible charities may apply either Financial Reporting Standards or the Charities Accounting Standard. A company seeking to prepare financial statements using a framework other than accounting standards issued by the Accounting Standards Committee must obtain approval from the Accounting and Corporate Regulatory Authority. The Authority indicates that it generally does not approve the use of IFRS alone; instead, companies may apply Singapore Financial Reporting Standards (International) and state simultaneous compliance with IFRS.

For listed entities, the Singapore Exchange requires financial statements for primary listings to be prepared in accordance with Singapore Financial Reporting Standards (International), IFRS, or United States Generally Accepted Accounting Principles. For secondary listings, financial statements need only be reconciled to one of those frameworks.

Under the Companies Act, companies are generally subject to statutory audit unless exempt. In practice, audit exemption is available to private companies that qualify as small companies, and to certain companies that qualify under the dormant company provisions. To qualify as a small company, a private company must meet at least two of the following three thresholds for the immediate past two consecutive financial years: annual revenue of not more than SGD 10 million, total assets of not more than SGD 10 million, and not more than 50 employees. Where a company is part of a group, additional small group criteria apply.

Audits are conducted in accordance with Singapore Standards on Auditing. These standards are developed through the Auditing and Assurance Standards Committee of the Institute of Singapore Chartered Accountants and are issued after approval by the Institute’s Council and concurrence of the Public Accountants Oversight Committee. Singapore Exchange rules also recognize International Standards on Auditing, United States Generally Accepted Auditing Standards, and Public Company Accounting Oversight Board standards for certain listed issuers, depending on listing status and reporting framework.

The accountancy profession in Singapore is regulated under a shared regulatory framework involving the Accounting and Corporate Regulatory Authority (ACRA) and the Institute of Singapore Chartered Accountants (ISCA).

Under the Accountants Act 2004, ACRA is the statutory regulator responsible for the registration, oversight, and discipline of public accountants and public accounting entities. The Public Accountants Oversight Committee (PAOC), established under the Act and operating under ACRA, oversees matters relating to the registration of public accountants, the regulation of public accountancy services, quality assurance reviews, investigative and disciplinary procedures, ethical requirements applicable to public accountants, and continuing professional education requirements for registered public accountants. The PAOC also oversees the approval of Singapore Standards on Auditing developed through ISCA’s due process.

Only individuals registered as public accountants, or approved public accounting entities, may provide public accountancy services required by law, including the audit and reporting of financial statements and other services that must legally be performed by a public accountant. These requirements are established under the Accountants Act. General accounting, tax, bookkeeping, corporate advisory, and financial consulting services may be provided without registration as a public accountant unless specifically required by law.

To register as a public accountant, an individual must satisfy the prescribed requirements relating to professional examinations, practical experience, ethics and professional practice, continuing professional education, and membership in the Institute of Singapore Chartered Accountants. In practice, registration as a public accountant requires the individual to be a Chartered Accountant of Singapore and a member of ISCA.

The Chartered Accountant designation and the Singapore Chartered Accountant Qualification are administered by ISCA as the national professional accountancy organization. ISCA’s responsibilities include administering the Singapore Chartered Accountant Qualification, establishing continuing professional development requirements for its members, setting ethical requirements for members, administering its investigative and disciplinary processes, and developing auditing standards for application in Singapore through its Auditing and Assurance Standards Committee.

ISCA also supports the quality assurance framework through practice monitoring activities delegated by ACRA for audits of non-public interest entities, while ACRA retains direct oversight of the overall Practice Monitoring Programme and disciplinary actions arising from inspection findings.

Membership in ISCA is mandatory for individuals seeking to register as public accountants and practice as statutory auditors. For other professional accountants working in business, industry, government, tax, advisory, or other non-audit roles, ISCA membership remains voluntary unless required by an employer, statute, or professional designation pathway.

The Accounting and Corporate Regulatory Authority (ACRA), established under the Accounting and Corporate Regulatory Authority Act and operating under the Accountants Act 2004, serves as the independent audit oversight authority in Singapore. ACRA is responsible for the registration and regulation of public accountants and public accounting entities, oversight of audit quality through its Practice Monitoring Programme, and enforcement of compliance with applicable professional and legal requirements. Its role and responsibilities are further described in the Regulation of the Accountancy Profession section.

Through the Public Accountants Oversight Committee, ACRA exercises direct oversight of the audit profession, including inspection, investigative and disciplinary functions, and approval of auditing standards applicable in Singapore. The Authority also oversees delegated practice monitoring activities conducted by the Institute of Singapore Chartered Accountants for audits of non-public interest entities.

ACRA is a founding member of the International Forum of Independent Audit Regulators and continues to play an active leadership role within the organization. It is also an active participant in regional audit oversight cooperation arrangements, including the ASEAN Audit Regulators Group.

The Institute of Singapore Chartered Accountants (ISCA), established in 1963, is the national professional accountancy organization in Singapore. It traces its origins to the Singapore Society of Accountants, which was established on 24 June 1963, and today serves as the principal professional body for accountants in the jurisdiction.

ISCA is recognized under Singapore’s statutory framework and operates within the shared regulatory model governing the profession. Its key responsibilities include administering the Singapore Chartered Accountant Qualification, establishing continuing professional development requirements for its members, setting ethical requirements applicable to members, administering its investigative and disciplinary mechanism, and developing auditing and assurance standards for application in Singapore through its Auditing and Assurance Standards Committee, subject to oversight and approval by the Accounting and Corporate Regulatory Authority.

ISCA also supports practice quality through voluntary quality assurance and practice support initiatives for members, including guidance, practice monitoring support, and technical resources, in addition to its delegated role in the review of audits of non-public interest entities under the oversight of the Public Accountants Oversight Committee.

Membership in ISCA is mandatory for individuals seeking registration as public accountants and for those wishing to practice as statutory auditors in Singapore. For professional accountants working in business, public sector, advisory, taxation, academia, and other non-audit roles, membership remains voluntary unless otherwise required by law, employer, or professional designation pathway.

In addition to being a Member of IFAC, ISCA is an active member of regional and international professional networks, including the ASEAN Federation of Accountants and Chartered Accountants Worldwide.

The responsibility for quality assurance reviews in Singapore rests with the Public Accountants Oversight Committee (PAOC), operating under the authority of the Accounting and Corporate Regulatory Authority (ACRA).

Under the Accountants Act 2004, all public accountants and public accounting entities are subject to mandatory quality assurance reviews under the Practice Monitoring Programme, which is administered by the PAOC. The scope of the Programme is to assess whether public accountants and public accounting entities comply with applicable professional standards, including the Singapore Standards on Quality Management (SSQM 1 and SSQM 2), which are based on International Standards on Quality Management (ISQM 1 and ISQM 2), the Singapore Standards on Auditing, and other relevant legal and regulatory requirements in the provision of public accountancy services. The quality management standards became effective on 15 December 2022.

For audits of non-public interest entities, the PAOC delegates Practice Monitoring Programme review responsibilities to the Institute of Singapore Chartered Accountants’ Practice Monitoring Division under ACRA’s oversight. This reflects the shared regulatory model for quality assurance reviews in the jurisdiction.

In addition, the Institute of Singapore Chartered Accountants operates a voluntary Quality Assurance Review Programme for other segments of its membership. This programme includes reviews of engagement files for compliance with the Singapore Standards on Auditing and firm-level systems of quality management for compliance with SSQM 1 and SSQM 2. Following completion of the review, a memorandum setting out findings and recommended action plans is issued to the firm.

The quality assurance review system is operational for all mandatory audits and incorporates the requirements of SMO 1. Accordingly, the quality assurance framework in Singapore is assessed as Adopted.

Current Status: Adopted

In Singapore, initial professional development and continuing professional development requirements for professional accountants are established through a shared framework involving the Accounting and Corporate Regulatory Authority (ACRA) and the Institute of Singapore Chartered Accountants (ISCA).

The Singapore Chartered Accountant Qualification serves as the principal pathway to qualification as a Chartered Accountant in Singapore. The qualification is administered by ISCA and overseen by ACRA, and is structured using a learning outcomes approach aligned with the International Education Standards (IES). The qualification includes a foundation and professional programme, ethics and professionalism components, and mandatory practical experience requirements. Candidates are required to complete three years of relevant practical experience with an Accredited Training Organisation.

For individuals seeking registration as public accountants and statutory auditors, ACRA requires completion of at least 2,500 hours of qualifying audit experience within the five years preceding registration. This practical experience must be obtained under the supervision of an approved audit principal and includes specified experience in key audit functions.

Continuing professional development requirements are established by both ACRA and ISCA. Registered public accountants are required to complete 120 hours of continuing professional education over a rolling three-year period to maintain their registration. ISCA members, including those who are not registered public accountants, are also subject to continuing professional development requirements, with aligned minimum hourly and ethics training requirements.

Based on the current qualification, practical experience, assessment, and continuing professional development framework, the educational requirements in Singapore are assessed as aligned with the International Education Standards in effect as of the time of the assessment.

Current Status: Adopted

Under the Accountants Act 2004, the Accounting and Corporate Regulatory Authority (ACRA), through the Public Accountants Oversight Committee (PAOC), is responsible for approving auditing standards to be applied in Singapore.

Under the Companies Act 1967, companies in Singapore are required to be audited unless they meet the applicable statutory audit exemption criteria.

The Institute of Singapore Chartered Accountants (ISCA), through its Auditing and Assurance Standards Committee, develops and issues the Singapore Standards on Auditing (SSA), which are based on the International Standards on Auditing (ISA) issued by the International Auditing and Assurance Standards Board (IAASB). The standards are issued following approval by the ISCA Council and concurrence of the PAOC.

Current standards published by ISCA reflect the latest revisions issued by the IAASB, including standards effective through 2024 and 2025, such as SSA 700 (Revised) and SSA 260 (Revised), as well as the quality management-related revisions linked to the International Standards on Quality Management.

The Singapore Standards on Auditing continue to be maintained in line with the International Standards on Auditing in effect as of the time of the assessment, with only limited modifications where necessary to reflect local legal and regulatory requirements.

Accordingly, auditing standards in Singapore are assessed as Adopted.

Current Status: Adopted

In Singapore, both the Accounting and Corporate Regulatory Authority (ACRA) and the Institute of Singapore Chartered Accountants (ISCA) are responsible for establishing ethical requirements for professional accountants.

Under the Accountants Act 2004 and the related regulatory framework, public accountants and public accounting entities are required to comply with ACRA’s Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities, which applies to registered public accountants and audit firms.

ISCA issues Ethics Pronouncement (EP) 100 Code of Professional Conduct and Ethics, which applies to all members of the Institute, including both public accountants and professional accountants in business. EP 100 is developed in line with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA), with limited Singapore-specific provisions to reflect local legal and regulatory requirements.

ISCA continues to update EP 100 to incorporate the latest IESBA pronouncements, including revisions relating to the definition of engagement team and group audits, technology-related revisions, and other amendments effective through 2024 and 2025. The Code in Singapore is therefore maintained in line with the version in effect as of the time of the assessment.

Accordingly, ethical requirements in Singapore are assessed as Adopted.

Current Status: Adopted

Public sector financial reporting in Singapore comprises two principal segments: the Government of Singapore and statutory boards.

For the Government of Singapore, financial reporting is governed by the Financial Procedure Act and the Financial Regulations. The Government’s accounts continue to be prepared on a cash basis, with the Accountant-General responsible for preparing the annual financial statements and statements of assets and liabilities for presentation to Parliament. As such, accrual-basis International Public Sector Accounting Standards (IPSAS) have not been adopted for the central government. (agd.gov.sg)

For statutory boards, the Accountant-General is the legal authority responsible for prescribing accounting standards. Statutory boards are required to prepare financial statements in accordance with the Statutory Board Financial Reporting Standards (SB-FRS), which are accrual-based standards derived primarily from Singapore Financial Reporting Standards and tailored to the public sector context.

In developing SB-FRS, relevant pronouncements of the International Public Sector Accounting Standards Board are considered where appropriate. This includes the incorporation of selected IPSAS concepts and standards, including the IPSAS Conceptual Framework and certain standards such as IPSAS 21 Impairment of Non-Cash-Generating Assets and IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers), with modifications to reflect the operating environment of statutory boards. (agd.gov.sg)

However, IPSAS in their entirety are not adopted for application across all public sector entities in Singapore. Accordingly, public sector accounting standards in Singapore are assessed as Partially Adopted.

Current Status: Partially Adopted

The responsibility for the investigation and discipline of professional accountants in Singapore rests with the Accounting and Corporate Regulatory Authority (ACRA), through the Public Accountants Oversight Committee (PAOC), and the Institute of Singapore Chartered Accountants (ISCA).

Under the Accountants Act 2004, ACRA is responsible for the investigation and discipline of registered public accountants and public accounting entities. The disciplinary framework includes statutory mechanisms for complaints, inspections, investigations, hearings, and sanctions. The Public Accountants Oversight Committee may initiate disciplinary proceedings arising from complaints, regulatory breaches, or findings from the Practice Monitoring Programme. Where deficiencies identified through practice monitoring are not appropriately remediated, the matter may be escalated for disciplinary action. (acra.gov.sg)

ISCA administers a separate investigative and disciplinary mechanism covering all its members, including both public accountants and professional accountants in business. The Institute’s framework includes complaints handling, investigation, disciplinary hearings, appeal procedures, and a range of sanctions, including reprimand, suspension, and termination of membership.

For audits of non-public interest entities, findings arising from practice monitoring reviews carried out by ISCA under delegated authority are reported to ACRA for further regulatory action where necessary. This supports the linkage between quality assurance review findings and disciplinary procedures.

The investigative and disciplinary framework is established and operational for all professional accountants within the regulated scope of the jurisdiction and incorporates the requirements of SMO 6. Accordingly, the investigation and disciplinary system in Singapore is assessed as Adopted.

Current Status: Adopted

Under the Accountancy Functions (Consolidation) Act 2022, the Accounting Standards Committee is responsible for formulating accounting standards to be applied by companies, charities, co-operative societies, and societies in Singapore.

The Committee issues Singapore Financial Reporting Standards (International) (SFRS(I)), which are equivalent to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB). Singapore-incorporated companies whose debt or equity instruments are traded, or are in the process of being issued for trading, on the Singapore Exchange are required to apply SFRS(I). These standards are identical to IFRS Accounting Standards, and entities applying SFRS(I) may assert simultaneous compliance with IFRS Accounting Standards.

The IFRS Foundation jurisdictional profile confirms that Singapore-incorporated listed companies are required to apply a financial reporting framework identical to IFRS Accounting Standards for annual periods beginning on or after 1 January 2018, and that this requirement applies to all domestic companies whose securities trade in a public market.

Other entities in Singapore, including non-listed companies, may voluntarily apply SFRS(I). Alternatively, depending on their nature and size, they may apply Singapore Financial Reporting Standards, the Singapore Financial Reporting Standard for Small Entities, or the Charities Accounting Standard.

For domestic publicly accountable entities, IFRS Accounting Standards in effect as of the time of the assessment are adopted and required for use in consolidated general purpose financial statements. Accordingly, financial reporting standards in Singapore are assessed as Adopted.

Current Status: Adopted

Relevant Organizations

• Accounting and Corporate Regulatory Authority
• Accounting Standards Committee
• Institute of Singapore Chartered Accountants
• Singapore Exchange

Relevant Legislation

• Accountants Act 2004
• Accounting and Corporate Regulatory Authority Act
• Accounting Standards Act 2007
• Accountancy Functions (Consolidation) Act 2022
• Companies Act 1967
• Accountants (Public Accountants) Rules

Relevant Publications

• IFRS Foundation, IFRS Application Around the World: Singapore Jurisdictional Profile
• Accounting and Corporate Regulatory Authority, Audit Exemption for Small Companies
• Accounting and Corporate Regulatory Authority, Audit Regulation in Singapore
• Accountant-General's Department Singapore, Accounting Standards for Statutory Boards
• Institute of Singapore Chartered Accountants, EP 100 Code of Professional Conduct and Ethics
• Institute of Singapore Chartered Accountants, Singapore Standards on Auditing (SSA)
• Institute of Singapore Chartered Accountants, Singapore Standards on Quality Management (SSQM)
• Institute of Singapore Chartered Accountants, Complaints and Disciplinary Process
• Institute of Singapore Chartered Accountants, Continuing Professional Education Requirements
• Accounting and Corporate Regulatory Authority, Singapore Chartered Accountant Qualification