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Singapore

International Standards on Auditing

Summary
According to the 2006 self-assessment prepared by the Institute of Certified Public Accountants of Singapore (ICPAS) for the International Federation of Accountants' Member Body Compliance Program, International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB) are adopted as the Singapore Standards on Auditing (SSAs), although with editorial amendments to reflect local legal requirements. The 2006 ICPAS self-assessment further noted that the Auditing and Assurance Standards Committee of the ICPAS considers all new and revised pronouncements issued by the IAASB and recommends them for adoption in Singapore. Listed and unlisted entities follow the same set of auditing standards.

    General Overview

    According to the 2006 Institute of Certified Public Accountants of Singapore (ICPAS) self-assessment, the International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB) are adopted as Singapore Standards on Auditing (SSAs), although with modifications to reflect local legal requirements. As explained in the self-assessment, "the law empowers ACRA [Accounting and Corporate Regulatory Authority] to issue pronouncements. These are converged with IAASB pronouncements. A way to describe the convergence approach is adoption with editorial amendments for local differences" (pp. 47-48). Further, the Auditing and Assurance Standards Committee of the ICPAS considers the new and revised pronouncements issued by the IAASB and recommends them for adoption. Listed and unlisted entities in Singapore follow the same set of auditing standards.
    The ICPAS was established in June 1963 as the Singapore Society of Accountants and in 1989 was reconstituted and renamed as ICPAS under the Accountants Act of 1987. ICPAS is responsible for setting audit and other assurance standards. The standard-setting process, as explained in the 2005 self-assessment, involves the issuance of Exposure Drafts (EDs) that are generally exposed for three months. Following public consultation, the ICPAS approves the standards and refers them to the Public Accountants Oversight Committee which is part of the ACRA. Per the self-assessment, "ACRA accepts all IFAC [International Federation of Accountants]-based standards issued by ICPAS for its practice monitoring of public accountants." Further, the 2006 ICPAS self-assessment notes that the Institute adopts the IFAC code of ethics, although with country-specific modifications. As explained in the self-assessment, "our Institute's Ethics Committee had identified some differences between the ethical codes, and is planning to meet the local government regulator to discuss about the adoption of the revised IFAC Code in Singapore" (p. 49). The ICPAS is listed as a member on the IFAC website.
    The 2005 ICPAS self-assessment points out that the ACRA regulates the audit profession and is responsible for the registration of public accountants, accounting corporations, and accounting firms in Singapore. The ACRA website notes that the authority came into existence in April 2004 by the enactment of the Accounting and Corporate Regulatory Act. A merger between the Registry of Companies and Businesses and the Public Accountants Board led to the formation of the ACRA. As an independent regulator of auditors and corporate financial reporting, the ACRA is responsible for the administration of the Accounting and Corporate Regulatory Authority Act, Accountants Act, the Business Registration Act, the Companies Act, and the Limited Liability Partnerships Act. Among other functions, the ACRA also makes recommendations to the government on issues regarding registration and regulation of business entities and public accountants.
    The legal framework governing accounting and auditing practices is largely contained in the Companies Act. According to a 2007 ACRA consultation paper, companies incorporated in Singapore are required to have their financial statements audited under section 205 of the Companies Act unless exempted from auditing requirements under the Accountants Act. The Companies Act is supplemented by the Accountants Act, Securities and Futures Act and the Listing Rules of the Singapore stock exchange (SGX-ST).
    In addition to SSAs, listed entities must also comply with the Listing Rules of the Singapore Stock Exchange (SGX-ST). As of December 2007, the SGX-ST has revised its listing rules "to improve market efficiency and promote accountability of listed companies" (p. 6), per the 2007 KPMG report on Financial Reporting Matters. Further, the 2005 self-assessment noted that, for listed entities, the Listing Manual of the SGX-ST requires the rotation of an audit engagement partner after five consecutive years. The Monetary Authority of Singapore (MAS, the central bank of Singapore) regulates the banking, futures, and insurance industries. According to the 2005 self-assessment, financial institutions are subject to MAS notices and guidelines in addition to the accounting and auditing requirements. Further, under sections 54 A and 58 of the Banking Act, banks incorporated in Singapore are prohibited from appointing the same audit firm for more that five consecutive financial years.


    The Principles

    ISA 200 Objective and General Principles Governing an Audit of Financial Statements (effective 2006)

    According to the 2006 ICPAS self-assessment, there are no differences between ISA 200 and the corresponding international standard. The self-assessment noted that SSA 200 was also amended to incorporate conforming amendments resulting from the introduction of SSA 700 (revised). However, in line with the IAASB, the effective date has been deferred.

    ISA 210 Terms of Audit Engagements (effective 2006)

    According to the 2006 ICPAS self-assessment, there are no differences between ISA 210 and the corresponding international standard. The self-assessment noted that SSA 210 was also amended in order to incorporate conforming amendments resulting from the introduction of SSA 700 (revised). However, in line with the IAASB the effective date has been deferred.

    ISA 220R Quality Control for Audits of Historical Financial Information (effective 2005)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 220R "Quality Control for Audits of Historical Financial Information" and the corresponding international standard. SSA 220R is effective for periods beginning on or after June 15, 2005.

    ISA 230R Documentation (effective 2006)

    According to the 2006 ICPAS self-assessment, in line with the IAASB, the Institute adopted the revised SSA 230 effective for periods beginning on or after June 15, 2006.

    ISA 240 The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 240 "Auditor's Responsibility to Consider Fraud in an Audit of Financial Statements" and the corresponding international standard. SSA 240 is effective for periods beginning on or after December 15, 2004.

    ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 250 "Consideration of Laws and Regulations in an Audit of Financial Statements" and the corresponding international standard. SSA 250 is effective for periods beginning on or after December 15, 2004.

    ISA 260 Communications of Audit Matters With Those Charged With Governance (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 260 "Communications of Audit Matters With Those Charged With Governance" and the corresponding international standard. SSA 260 is effective for periods beginning on or after December 15, 2004.

    ISA 300 Planning an Audit of Financial Statements (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 300 "Planning an Audit of Financial Statements" and the corresponding international standard. SSA 300 is effective for periods beginning on or after December 15, 2004.

    ISA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 315 "Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement" and the corresponding international standard. SSA 315 is effective for periods beginning on or after December 15, 2004.

    ISA 320 Audit Materiality (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 320 "Audit Materiality" and the corresponding international standard. SSA 320 is effective for periods beginning on or after December 15, 2004.

    ISA 330 The Auditor’s Procedures in Response to Assessed Risks (effective 2006)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 330 "The Auditor's Procedures in Response to Assessed Risks" and the corresponding international standard. SSA 330 is effective for periods beginning on or after December 15, 2004.The IAASB subsequently revised ISA 330 and there is no further information whether ICPAS has incorporated these changes.

    ISA 402 Audit Considerations Relating to Entities Using Service Organizations (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 402 "Audit Considerations Relating to Entities Using Service Organizations" and the corresponding international standard. SSA 402 is effective for periods beginning on or after December 15, 2004.

    ISA 500 Audit Evidence (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 500 "Audit Evidence" and the corresponding international standard. SSA 500 is effective for periods beginning on or after December 15, 2004.

    ISA 501 Audit Evidence - Additional Considerations for Specific Items (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 501"Audit Evidence - Additional Considerations for Specific Items" and the corresponding international standard. SSA 501 is effective for periods beginning on or after December 15, 2004.

    ISA 505 External Confirmations (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 505 "External Confirmations" and the corresponding international standard. SSA 505 is effective for periods beginning on or after December 15, 2004.

    ISA 510 Initial Engagements — Opening Balances (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 510 "Initial Engagements -- Opening Balances" and the corresponding international standard. SSA 510 is effective for periods beginning on or after December 15, 2004.

    ISA 520 Analytical Procedures (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 520 "Analytical Procedures" and the corresponding international standard. SSA 520 is effective for periods beginning on or after December 15, 2004.

    ISA 530 Audit Sampling and Other Selective Testing Procedures (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 530 "Analytical Procedures" and the corresponding international standard. SSA 520 is effective for periods beginning on or after December 15, 2004.

    ISA 540 Audit of Accounting Estimates (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 540 "Audit of Accounting Estimates" and the corresponding international standard. SSA 540 is effective for periods beginning on or after December 15, 2004.

    ISA 545 Auditing Fair Value Measurements and Disclosures (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 545 "Auditing Fair Value Measurements and Disclosures" and the corresponding international standard. SSA 545 is effective for periods beginning on or after December 15, 2004.

    ISA 550 Related Parties (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 550 "Analytical Procedures" and the corresponding international standard. SSA 550 is effective for periods beginning on or after December 15, 2004.

    ISA 560 Subsequent Events (effective 2006)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 560 "Subsequent Events" and the corresponding international standard. SSA 560 is effective for periods beginning on or after December 15, 2004. Furthermore, conforming amendments to SSA 560 resulting from the revision of SSA 700 (Revised) are effective for Auditor's Reports dated on or after December 31, 2006.

    ISA 570 Going Concern (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 570 "Going Concern" and the corresponding international standard. SSA 570 is effective for periods beginning on or after December 15, 2004.

    ISA 580 Management Representations (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 580 "Management Representations" and the corresponding international standard. SSA 580 is effective for periods beginning on or after December 15, 2004.

    ISA 600 Using the Work of Another Auditor (effective)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 600 "Using the Work of Another Auditor" and the corresponding international standard. SSA 600 is effective for periods beginning on or after January 1, 1997.

    ISA 610 Considering the Work of Internal Auditing (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 610 "Considering the Work of Internal Auditing" and the corresponding international standard. SSA 610 is effective for periods beginning on or after December 15, 2004.

    ISA 620 Using the Work of an Expert (effective 2005)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 620 "Using the Work of an Expert" and the corresponding international standard. SSA 620 is effective for periods beginning on or after December 15, 2004.

    ISA 700 The Auditor’s Report on Financial Statements (effective 2006)

    According to the 2006 ICPAS self-assessment, ISA 700 was adopted as SSA 700 effective for periods beginning on or after December 31, 2006. Further, per the self-assessment there are no differences between ISA 700 and the revised SSA 700.

    ISA 701 Modifications to the Independent Auditor's Report (effective 2006)

    According to the 2006 ICPAS self-assessment, ISA 701 was adopted as SSA 701 "Modifications to the Independent Auditor's Report" effective for auditor's reports dated on or after December 31, 2006.

    ISA 710 Comparatives (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 710 "Comparatives" and the corresponding international standard. SSA 710 is effective for periods beginning on or after December 15, 2004.

    ISA 720 Other Information in Documents Containing Audited Financial Statements (effective 2004)

    According to the 2006 ICPAS self-assessment, there are no differences between SSA 720 "Other Information in Documents Containing Audited Financial Statements" and the corresponding international standard. SSA 720 is effective for periods beginning on or after December 15, 2004.

    ISA 800 The Auditor’s Report on Special Purpose Audit Engagements (effective 2006)

    According to the 2006 ICPAS self-assessment, in line with the IAASB pronouncements, SSA 800 was amended to incorporate conforming amendments resulting from the introduction of SSA 700 (revised). The revised SSA 800 became effective for periods beginning on or after December 31, 2006.

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    Sources of Assessment

    Deloitte & Touche Tohmatsu, "Changes to the Financial Reporting Framework in Singapore," November 2005. Available from Deloitte & Touche website. Accessed on January 10, 2008. (Deloitte & Touche 2005)

    Institute of Certified Public Accountants of Singapore, "Assessment of the Regulatory and Standard- Setting Framework," Self-assessment prepared as part of the International Federation of Accountants' (IFAC) Member Body Compliance Program, May 2005. Available from International Federation of Accountants website. Accessed on January 10, 2008. (ICPAS 2005)

    Institute of Certified Public Accountants of Singapore, "Response to the IFAC Part 2, SMO Self-Assessment Questionnaire," Self-assessment prepared as a part of the International Federation of Accountants' (IFAC) Member Body Compliance Program, September 2006. Available from International Federation of Accountants website. Accessed on January 10, 2008. (ICPAS 2006)

    Relevant Organizations

    Accounting and Corporate Regulatory Authority (ACRA)

    Institute of Certified Public Accountants of Singapore (ICPAS)

    Institute of Internal Auditors Singapore (IIA)

    Ministry of Finance (MoF)

    Monetary Authority of Singapore (MAS)

    Public Accountants Oversight Committee (PAOC)

    Singapore Accountancy Academy (SAA)

    Singapore Stock Exchange (SGX-ST)



    Relevant Legislation/Regulation

    Accountants Act (Chapter 2), 2005 Revised Edition

    Singapore Standards on Auditing (SSAs)

    Exposure Drafts of the Singapore Standards on Auditing (ED SSAs)

    Securities and Futures Act (Chapter 289), 2006 Revised Edition

    Companies Act (Chapter 50), 2005 Revised Edition

    Accounting and Corporate Regulatory Authority Act (Chapter 2A), 2005 Revised Edition

    Banking Act (Chapter 19), 2003 Revised Edition

    Business Registration Act (Chapter 32), 2005 Revised Edition

    Limited Liability Partnerships Act (Chapter 163A), 2006 Revised Edition

    SGX Rules

    SGX Listing Manual



    Supplementary Sources

    Accounting Corporate and Regulatory Authority, "Regulatory Strategy: Auditing & Corporate Reporting," 2007. Available from Accounting Corporate and Regulatory Authority website. Accessed on January 10, 2007. (ACRA 2007)

    Deloitte & Touche Tohmatsu, "Changes to the Financial Reporting Framework in Singapore," October 2004. Available from Deloitte & Touche website. Accessed on January 10, 2008. (D&T 2004)

    International Federation of Accountants website. Accessed on January 10, 2008. (IFAC website)
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