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Creating financial statements can feel overwhelming—especially when terms like "audited" and "unaudited" come into play.
If you’re a business owner for a company in Singapore, you might be wondering:
- Do I need an audit?
- Can I submit unaudited financial statements for tax purposes?
- What happens if I don’t prepare financial statements properly?
Not every business needs audited financial statements, but misunderstanding the rules could result in missed opportunities or compliance issues.
At the same time, relying on unaudited statements could impact your ability to secure loans, attract investors, or even sell your business
This guide explains everything you need to know about unaudited financial statements in Singapore—who needs them, when they’re enough, and when you might need to take them further.
1. What are unaudited financial statements for a company in Singapore?
A financial statement is an overview of your company’s financial health without the added scrutiny of an external audit.
It summarizes key figures—balance sheet, income statement, and cash flow statement.
In this way, unaudited financial statements help track performance, manage cash flow, and make informed decisions for small businesses in Singapore.
Many companies use them to comply with the Singapore Financial Reporting Standards (SFRS) or as a stepping stone to more formal financial reporting. Getting these numbers right is crucial if you plan to scale, do financial planning right, or attract investors.
2. Audited vs Unaudited financial statements: What is the difference?
The key difference between audited and unaudited financial statements comes down to validation.
Audited financial statements undergo a thorough review by an external auditor, ensuring accuracy and compliance with accounting standards like the SFRS or the IFRS.
Unaudited financial statements, on the other hand, are prepared internally and lack external verification.
For more clarification, our accounting experts have prepared the comparison table below to help you better understand the distinction.
| Aspect | Audited statements | Unaudited statements |
| Check | External auditor checks and verifies | Internal accountant prepares |
| Trust | More trusted by investors and regulators | Reliable for internal management |
| Use | For reports, compliance, and investor funding | For internal use & planning |
| Details | Detailed, with notes & disclosures | Basis financial information |
3. When & Why audits are required for your Singapore company?
Not every company in Singapore needs an audit.
Only companies that are either a public entity or earn more than SGD 10 million (more than USD 7,4 million), need to have their financial statements audited.
This rule ensures transparency, builds investor confidence, and keeps financial reporting reliable.
Previously, only Exempt Private Companies (EPCs) with ≤ S$5 million in revenue qualified for audit exemption. However, this rule has changed since 2015.
For smaller businesses, audits aren’t mandatory if they qualify for an exemption.
Our Singapore accounting expert has prepared a table below to help you know whether your company meets ACRA’s criteria or not.
| Company types | Qualify if | ACRA’S criteria |
| Small companies | The company is private and meets at least two of these three criteria for two consecutive years: |
|
| Group of companies | All entities within the group must meet at least two of the three small company criteria for two years. This applies to subsidiaries and joint ventures. |
|
| Dormant company | It remains inactive, apart from necessary expenses like filing fees. | No business activities in a financial year |
4. How to get your company’s financial statements audited?
In case your company must prepare audited financial statements, here is a simple step-by-step process to do it right
You first need to find an ACRA-registered auditor with experience in your industry.
You can start by looking through this list of ISCA (Institute of Singapore Chartered Accountants) to find the right company that offers auditing services.
Find an expert auditor at your fingertips
You can contact Global Link Asia Consulting and we can help you perform an audit with the support of a trusted qualified auditor who is a long-term partner of our company.
Our quality is reflected via our price (No hidden fee) and our 10-year accounting expert in the field with the dedication to support you from start to finish.
Your in-house accountant should gather all necessary records, including unaudited financial statements, accounting records, and supporting documents so that the auditor can begin the process
The auditor will review statements, test internal controls, and verify transactions to ensure accuracy and compliance.
Once complete, the auditor will issue a report with their opinion on your financial statements, increasing stakeholder confidence.
5. Cost and considerations of audited financial statements
5.1. How much does an audit cost?
Choosing the right auditor or auditing companies is vitally important.
You do not want to receive unqualified audited financial statements, which risk putting your company in jeopardy and are expensive to do at the start.
There are 3 factors you need to consider when hiring an auditor for your financial statements: Audit fees vary based on your company size, financial complexity, and auditor rates.
You should always check the workload firsthand with the service provider to see if they charge highly or not.
Typically, for small and medium enterprises (SMEs), audit fees range from S$2,000 to S$10,000. Larger corporations with more intricate financial structures can expect costs exceeding S$50,000.
The auditing fee can be lower if you know how to prepare your financial statements for your Singapore companies the right way.
5.2. How can you minimize audit expenses?
To minimize audit expenses, small businesses can:
- Maintain accurate financial records throughout the year to reduce the auditor workload.
- Use accounting software to streamline financial reporting. (We suggest you use QuickBooks Online for SMEs as it is cost-effective and suggested to use by IRAS).
- Engage a professional accountant to prepare financial statements by the SFRS or IFRS before the audit. (This way, you do not have to spend an extra fee for document organizing and financial statement preparation.)
- Check if your company is eligible for any audit exemption under ACRA’s small company criteria.
Quality auditing services with no hidden fees
Global Link Asia Consulting is proud to help you minimize your audit expenses while providing top-quality auditing services.
We offer A-to-Z tax accounting services (with no hidden fee), you can feel easy knowing you are in good hands of our experts who can help you manage your company sustainably
5.3. How can you ensure compliance and accuracy?
To ensure financial statements are accurate and audit-ready, you or your trusted accountants should uphold the right record-keeping practices
- Follow Singapore Financial Reporting Standards (SFRS) to meet compliance requirements;
- Regularly reconcile accounts to detect discrepancies early (Ideally every month);
- Keep clear records of invoices, receipts, and bank statements for easy reference.
- Engage professional accountants to prepare financial reports before submission.
How to do record keeping the right way?
You can check out our amazing, easy-to-follow article on Record keeping in Singapore and how to do it the right way,
6. How can Global Link Asia Consulting help you prepare audited financial statements?
At Global Link Asia Consulting (GLAC), we understand that financial reporting and audits can be complex, but it does not have to be.
Our team of experienced accountants and audit partners ensures that your financial statements are accurate, compliant, and audit-ready, helping you avoid costly mistakes and penalties.
We offer one-stop, no-hidden-fee services that cover everything you need to manage your company finances and make your company compliant all the time.
Our customer-centric support can help you
- Prepare comprehensive financial statements following the SFRS, IFRS;
- Assess whether your company qualifies for audit exemptions
- Ensure your financial records are well-organized and reconciled, reducing audit complexities.
- Coordinate with external auditors to facilitate a smooth audit process, minimizing disruptions to your operations.
- Comply with ACRA’s statutory audit requirements to avoid legal issues.
- File tax returns with the IRAS guidelines
- Provide financial insights and recommendations to strengthen your company’s financial health.
7. FAQs about financial statements for companies in Singapore
No, not all companies in Singapore need audited financial statements.
Small companies may qualify for an audit exemption if they meet at least two out of three criteria for 2 consecutive years:
- Total annual revenue is $10 million or less.
- Total assets are $10 million or less.
- The company has 50 or fewer employees.
No, banks and major financial institutions usually require audited financial statements for large business loans.
Similarly, alternative lenders and fintech platforms may accept unaudited financial statements, but they often ask for additional proof, such as bank statements, tax filings, or invoices.
No, buyers and investors prefer audited financial statements for accuracy and trust.
For small private businesses, unaudited financial statements may be enough if buyers can verify revenue and expenses through other documents.
For larger businesses, investors usually demand audited reports to ensure financial accuracy.
To increase the business valuation, you, as a company owne,r should provide additional evidence such as bank statements, tax records, and sales reports. and have your financial statements audited the right way.
Falsely claiming an audited financial statement is a serious offense in Singapore.
Under the Companies Act, providing false or misleading financial information can result in fines, legal action, or even imprisonment. ACRA (Accounting and Corporate Regulatory Authority) can investigate and penalize companies that submit fraudulent financial statements.
Directors and company officers responsible for the false claim may face personal liability and be disqualified from managing companies.
To avoid legal risks, companies should always ensure transparency and accuracy in their financial reporting.
We offer a comprehensive range of accounting and tax services for Singaporean companies. Our services include:
- Tax Consulting including corporate income tax, GST tax, contractor tax, and more.
- Monthly/Annual Tax Accounting services in accordance with Singapore accounting standards (SFRS).
- QuickBooks Consulting and Licensing.
- Corporate Income Tax Return Preparation
- GST Tax Return Preparation.
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