From a financial reporting perspective, information asymmetry refers to the disadvantage a user of financial statements faces as to its truth and fairness since the reporting party has complete control over the information. Arising from the risks of information asymmetry, the reporting party is required to provide assurance on the accuracy and completeness of the financial and/or other information submitted to the user/s. The attest function performed by an independent third party, the public accountant, assists the reporting party in providing the assurance sought by the user/s.
We carry out independent audits of the financial statements of small to medium-sized companies and other organisations. An audit serves to enhance the degree of confidence of intended users in the financial statements, whether it is for the purpose of statutory filing in Singapore or as part of reporting for Group consolidation. The auditor gives credibility to the client’s financial statements by expressing an opinion on its truth and fairness as measured against International/Singapore Financial Reporting Standards. The audit opinion is based on whether there is reasonable assurance that the client’s financial statements are not materially misstated due to error of fraud.
The objective of such engagements is for the auditor to carry out procedures of an audit nature. In these engagements, the auditor and the organisation under review and any appropriate third parties have agreed on the procedures to be performed and for the auditor to report on factual findings. The auditor only provides a report of the factual findings on the agreed-upon procedures, and no assurance is expressed. Instead, users of the report assess for themselves the procedures and findings reported by the auditor and draw their own conclusions from the auditor's work. Some examples of reporting on agreed-upon procedures special audits are reports on sales/revenue, subsidy claims and specific components of financial statements.
Compilation ReportsFor those companies not required by the Companies Act to have an audit and where shareholders do not wish for an audit of the financial statements, we provide a compilation service.
The compilation process involves the preparation of financial statements that comply with the requirements of International/Singapore Financial Reporting Standards based on financial information provided by the Company's Management. The compilation process does not require the audit or verification of the underlying information.
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