Audit Procedure Template for Singapore

An Audit Procedure is a detailed set of steps that auditors follow to examine a company's financial records and operations. These procedures help ensure compliance with Singapore's Companies Act and accounting standards while detecting potential errors, fraud, or irregularities in financial statements.

Good audit procedures typically include reviewing source documents, confirming account balances, observing business processes, and testing internal controls. In Singapore, these must align with standards set by ACRA (Accounting and Corporate Regulatory Authority) and follow the Singapore Standards on Auditing (SSA), giving stakeholders confidence in the accuracy and reliability of financial reporting.

Companies need Audit Procedures during annual financial audits, major transactions, or when preparing for regulatory inspections by ACRA. These procedures become essential when verifying financial statements, investigating suspicious transactions, or responding to stakeholder concerns about financial accuracy.

Audit Procedures are particularly important during corporate restructuring, mergers and acquisitions, or when expanding operations. Singapore-based companies must also implement these procedures when dealing with cross-border transactions, managing complex revenue streams, or addressing specific compliance requirements under the Companies Act and SSA framework.

• Audit Of Cash And Bank: Examines main bank accounts, reconciliations, and large transactions
• Audit Of Cash Receipts: Focuses on incoming payment verification and revenue recognition
• Analytical Review Of Financial Statements: Analyzes financial ratios and trends across reporting periods
• Audit Assertions For Cash: Verifies accuracy and existence of cash balances
• Audit Of Petty Cash: Reviews small cash transactions and internal controls

• External Auditors: Independent professionals from registered public accounting firms who design and execute Audit Procedures according to SSA standards
• Company Directors: Review and approve audit scope, ensure compliance with ACRA requirements, and act on findings
• Finance Teams: Prepare documentation, respond to audit queries, and implement recommended controls
• Audit Committee Members: Oversee the audit process and evaluate results on behalf of the board
• Internal Audit Department: Develops and maintains internal audit procedures, coordinates with external auditors

• Identify Scope: Define the specific areas, accounts, or processes to be audited under Singapore's audit standards
• Gather Documents: Collect financial statements, bank records, previous audit reports, and internal control documentation
• Set Objectives: Outline clear audit goals aligned with SSA requirements and company risk assessment
• Map Resources: Determine required personnel, timeframes, and access to systems or records
• Define Steps: Detail specific testing procedures, sampling methods, and documentation requirements
• Review Controls: Assess existing internal controls and their effectiveness in preventing errors or fraud

• Objective Statement: Clear purpose and scope of the audit aligned with Singapore Standards on Auditing
• Risk Assessment: Documented evaluation of potential financial misstatements and control weaknesses
• Testing Procedures: Detailed steps for evidence gathering, sampling methods, and analytical procedures
• Documentation Requirements: Specific records to maintain under ACRA guidelines
• Quality Control Measures: Protocols ensuring compliance with SSA quality standards
• Reporting Framework: Structure for communicating findings and recommendations
• Confidentiality Provisions: Data protection measures meeting PDPA requirements

While both documents focus on organizational oversight, an Audit Procedure differs significantly from a Compliance Procedure. The key distinctions lie in their scope, timing, and specific objectives within Singapore's regulatory framework.

• Purpose and Focus: Audit Procedures specifically examine financial records and transactions to verify accuracy and detect irregularities, while Compliance Procedures ensure ongoing adherence to all regulatory requirements and internal policies
• Timing: Audit Procedures are typically conducted periodically or for specific events, whereas Compliance Procedures operate continuously throughout the year
• Implementation Scope: Audit Procedures follow strict SSA guidelines and focus on financial evidence, while Compliance Procedures cover broader operational aspects including HR, data protection, and industry-specific regulations
• Outcome: Audit Procedures result in formal audit opinions and findings, while Compliance Procedures generate ongoing monitoring reports and corrective action plans