The accounts of all IPCs have to be externally audited.
Charities which are companies limited by guarantee have to be audited based on the requirements under the Companies Act.
For the other charities, those with annual income or expenditure exceeding $250k are subject to external audit.
The accounts of all IPCs will continue to have to be externally audited.
Charities which are companies limited by guarantee will continue to be audited based on the requirements under the Companies Act.
To provide greater flexibility, the audit thresholds for the other charities have been revised upwards, as shown below:
$250k or less
Accounts can be examined by an *independent person (also known as the independent examiner) whom the governing board members believe have the relevant ability and practical experience. (No change in requirement)
Between $250k and $500k
Accounts can be examined by an independent person who is a member of the Institute of Singapore Chartered Accountants (formerly known as the Institute of Certified Public Accountants of Singapore), or who possesses the necessary qualifications to be a member of the Institute of Singapore Chartered Accountants.
Accounts have to be externally audited by a public accountant.
All charities which are required to have their financial statements audited under the Charities (Accounts and Annual Report) Regulations are required to comply with either the Financial Reporting Standards (FRS) or the Charities Accounting Standard (CAS). However, those charities that hold significant investments in any subsidiary, associate or joint venture that is not a charity, are required to comply with FRS.
CAS is a simpler financial reporting framework that is tailored to the needs of the charity sector. It aims to better meet the stakeholder by providing information that is more relevant and fit-for- purpose.
Click here for details on the statement of applicability.
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