Forum: When any audit non-compliance is detected, Acra takes action depending on the severity

We refer to the letter by Mr Cheong Wing Kiat, "Erroneous audited accounts must be investigated, removed from archives and refiled" (June 9).

Directors are required to prepare financial statements in compliance with the prescribed accounting standards in Singapore. When we detect any non-compliance, we may, depending on the severity, take actions such as issuing advisory letters to directors, seeking remediation actions such as revision of past financial statements, issuing warnings or imposing composition sums, and/or prosecuting the directors.

If we are of the view that the financial statements should be revised to correct the non-compliance, we will request that the company revise, reaudit, and refile the revised financial statements with us.

To maintain transparency, the original financial statements will continue to be available publicly in our registry (with a note referring users to the revised financial statements), unless a court order is obtained to expunge the original financial statements.

We use a risk-based approach to select public accountants for practice review, taking into account the complexity of the audits done by them, the level of public interest involved in these audits, and any complaints received against them.

Shirley Loo
Divisional Director, Corporate Development Division
Accounting and Corporate Regulatory Authority (Acra)

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