Acra to review accounting rules to maintain high standards amid evolving business backdrop
Sign up now: Get ST's newsletters delivered to your inbox
The review will involve engaging with key stakeholders and conducting public consultations before proposals are made to amend the law.
PHOTO: BT FILE
Follow topic:
SINGAPORE – The accounting industry watchdog will re-evaluate the sector’s regulatory framework in a bid to keep pace with the changing business environment and maintain standards.
The Accounting and Corporate Regulatory Authority (Acra) review will likely take some time, given the need to engage with key stakeholders and conduct public consultations before proposals are made to amend the law.
“We will provide more information when ready,” an Acra spokesman said.
The review was flagged by Finance Minister Lawrence Wong during a speech at the Institute of Singapore Chartered Accountants’ (ISCA) 60th anniversary dinner on Tuesday.
“We cannot afford to allow our standards in Singapore slip,” he said, noting that this was why he had asked Acra to review the rules and compare them with “best practices” across other jurisdictions.
Mr Wong, who is also Deputy Prime Minister, cited events such as the collapse of crypto exchange FTX last November and major British construction company Carillion in 2018, which showed that accounting lapses and fraud remain a serious concern.
He also pointed to commodities trader Noble Group
The firm was found to have published misleading information in its financial statements and was hit with a hefty fine, while its auditors were “issued orders”.
This meant that the auditors were not able to practise independently, and their work had to be reviewed under close supervision and monitoring by fellow auditors.
Mr Wong noted: “From time to time, lapses or fraud can still occur, and if they do, we will act swiftly to take the necessary regulatory actions, including against the auditors if their work falls short.”
He added that while no system was foolproof, the industry had to strive to uphold high standards and safeguard Singapore’s reputation as a trusted place of business.
Tuesday’s dinner also allowed ISCA, which is the national accounting body, to honour trailblazers and business leaders who have made significant contributions to the industry, including Messrs Boon Swan Foo, Willie Cheng, Bobby Chin, Michael Lim and Dr Gerard Ee, as well as Mrs Fang Ai Lian, Ms Grace Fu and Ms Euleen Goh.
