Appointing an auditor is a key compliance requirement for many companies in Singapore. While not every company needs an audit, understanding when it's mandatory—and the consequences of missing deadlines—is essential for staying on the right side of the law.
Who Needs to Appoint an Auditor?
Under the Companies Act of Singapore, a company is exempt from audit if it qualifies as a small company:
- It is a private company, and
- It meets at least two of the following three criteria for the past two consecutive financial years:
- Total annual revenue ≤ SGD 10 million
- Total assets ≤ SGD 10 million
- Number of employees ≤ 50
If a company does not qualify as a small company, it must appoint an auditor.
When to Appoint an Auditor
For companies that require an audit, the first auditor must be appointed:
- Within 3 months of the date of incorporation.
Subsequent auditors must be appointed at each AGM if there’s a vacancy or resignation.
Penalties for Non-Compliance
Failure to appoint an auditor in Singapore on time may result in:
- Fines up to SGD 5,000
- Potential prosecution for company officers
- Delays in annual return filing and other corporate processes
Final Thoughts
A timely auditor appointment isn’t just a compliance checkbox—it protects stakeholders and strengthens financial transparency. Always consult a corporate services provider or compliance expert to ensure you're meeting statutory obligations.
