Koh & Lim Audit PAC is a Singapore audit firm serving businesses and organisations with different financial reporting needs. Its audit services include company statutory financial audits, group company audits, gross turnover (GTO) and sales turnover audits, charity and non-profit audits, and MCST audits.
The firm also provides accounting support services, including bookkeeping, financial report compilation and GST submission support. Businesses and organisations can enquire about the service that best fits their structure, reporting obligations and deadlines.
Audit Services for Businesses and Organisations
An audit involves an independent examination of financial information. It may help provide assurance to shareholders, board members, donors, management committees, landlords and other stakeholders who rely on an organisation’s financial statements or turnover reports.
The work may include reviewing accounting records, checking supporting documents, asking questions about significant transactions and assessing how financial information has been prepared. The audit approach depends on the organisation’s activities, reporting requirements and the purpose of the engagement.
An audit does not guarantee that every error, fraud or control weakness will be found. It is conducted using procedures designed to obtain reasonable assurance that the financial information is not materially misstated.
Organisations remain responsible for maintaining their accounting records and preparing their financial statements. The auditor independently examines the information and reports on the work performed.
Company Statutory Financial Audits
A company audit examines a company’s financial statements and the accounting records that support them. The work may cover areas such as revenue, expenses, assets, liabilities, cash balances, loans, trade receivables, trade payables, payroll and tax balances.
Company directors are responsible for preparing the financial statements and maintaining appropriate accounting records. The audit firm’s role is to examine the financial information and issue an independent auditor’s report based on the work performed.
For small and medium-sized businesses, the audit process often involves coordination between directors, finance staff, bookkeepers and external service providers. Keeping records organised before the audit begins can make it easier to respond to questions and provide supporting documents.
Companies should plan around their financial year-end, the availability of records and staff, reporting deadlines and any upcoming meetings or filing obligations. Starting early gives the company time to prepare information and resolve outstanding questions.
A company’s audit obligations depend on its circumstances and applicable requirements. Some smaller companies may qualify for an audit exemption, but eligibility should be assessed against the current rules. Other requirements, such as a contract, funding arrangement or stakeholder request, may also call for audited financial statements.
Group Company Audits
A group audit may be required when a parent company prepares consolidated financial statements covering one or more subsidiaries. The audit may involve information from different entities, locations, accounting systems or reporting periods.
The audit team may need to understand the group structure, review consolidation adjustments and assess how information is collected from each entity. Areas of attention may include intercompany balances and transactions, ownership interests, accounting policies and foreign currency balances, where relevant.
Good coordination between the parent company and its subsidiaries helps the process run more smoothly. Each entity should know what information is required, who is responsible for preparing it and when it must be submitted.
Where group companies use different accounting systems or processes, a consistent reporting pack can help organise the information. Clear records also make it easier to identify and explain differences between entities.
GTO and Sales Turnover Audits
A gross turnover or sales turnover audit is often requested from a retail tenant by a landlord, shopping mall or building management. The tenant may need to provide a statement of sales for a specified period, prepared or audited according to the relevant agreement.
Reporting requirements can differ between agreements. Before preparing the records, the tenant should check the requested period, the definition of turnover, the required report format and the submission deadline. The agreement may specify how discounts, refunds, service charges, online sales or transactions processed through third-party platforms should be treated.
The auditor may examine sales reports, point-of-sale records, invoices, credit notes, bank statements, payment processor reports and other documents supporting the reported turnover. The business should make sure its daily sales records are complete and any adjustments are documented.
Retailers with multiple outlets or sales platforms may need a process for bringing their records together and reconciling the figures. Keeping this information organised throughout the year can make it easier to prepare for a turnover audit.
Charity and Non-Profit Audits
Charities, non-profit organisations, clubs and societies may receive donations, grants, membership fees and other forms of support. They may also operate programmes, provide services, organise fundraising events or distribute assistance to beneficiaries. Clear financial reporting helps explain how funds were received and used.
An audit for a charity or non-profit organisation may involve examining income, expenditure, assets, liabilities and supporting records. Depending on the organisation, this may include donations, grants, programme expenses, payroll, event collections and restricted funds.
Useful documents may include donation records, grant agreements, receipts, payment approvals, invoices, bank statements, event records and documents explaining the purpose of significant expenditure.
The board or management committee should understand its responsibilities for financial oversight and reporting. Where different people manage fundraising, programmes and finance, agreed procedures for recording and approving transactions can help keep records complete.
Audit requirements depend on the organisation’s legal form, governing documents, funding arrangements and applicable regulations. A charity or non-profit organisation should confirm which reporting requirements apply to its own circumstances.
MCST Audits
A management corporation oversees common property and shared funds for a development. Its accounts may include a management fund and a sinking fund, as well as other financial records relevant to the development’s operations.
An MCST audit may involve examining income and expenditure, bank balances, contributions, maintenance costs, contractor payments and supporting records. The auditor may also consider whether the financial statements present the funds and transactions clearly and consistently.
Accurate records help council members and subsidiary proprietors understand how funds are managed. Useful documents may include bank statements, invoices, contracts, payment approvals, contribution records and details of significant maintenance or repair work.
A clear handover between managing agents, council members and finance personnel helps preserve continuity. The MCST should know where records are stored, who can access them and how outstanding items will be followed up during the audit.
Preparing for an Audit
Good preparation can make an audit more organised. The records required depend on the organisation and the audit scope, but commonly requested documents include:
- Trial balance and general ledger for the financial period
- Bank statements and bank reconciliations
- Sales invoices, receipts and credit notes
- Supplier invoices and payment records
- Payroll summaries and relevant supporting records
- Loan agreements and schedules
- Fixed asset records and details of significant purchases or disposals
- Details of year-end accruals, prepayments and estimates
- Minutes or resolutions relating to significant financial decisions
- Contracts, grant agreements or tenancy documents relevant to the audit
It can be helpful to assign one person to coordinate the audit requests. A central contact can track documents, direct questions to the right person and monitor outstanding items. If a requested record is unavailable, explain why and provide any alternative evidence that may help.
Reconcile important balances before fieldwork begins. For example, the bank balance in the accounting records should be reconciled with the bank statement. Significant receivable and payable balances should be reviewed, and unusual transactions should have clear explanations and supporting documents.
Management should tell the auditor about significant events during or after the financial year, changes in operations, disputes, financing arrangements and known issues that could affect the financial statements. Sharing information early helps the audit team plan its work.
What to Expect During the Audit
An audit generally begins with an understanding of the organisation, its activities and the purpose of the engagement. The auditor may request background information, financial records and supporting documents before or during fieldwork.
The auditor then performs procedures based on the assessed risks and available evidence. These may include asking questions, inspecting documents, testing selected transactions, reviewing reconciliations and requesting confirmation of certain balances.
The organisation may need to explain unusual movements or provide additional evidence. At the end of the process, the auditor discusses relevant matters with management. The organisation may need to make adjustments or provide further explanations before the financial statements and auditor’s report are finalised.
The timeline depends on factors such as the organisation’s complexity, the condition of its accounting records, how quickly information is provided and whether significant issues arise. An early start and prompt responses can help the process move forward.
Choosing an Audit Firm
When choosing an audit firm, consider its experience with the type of organisation and audit required. A company statutory audit, charity audit, MCST audit and mall turnover audit can involve different records and reporting expectations.
When requesting a quotation, explain your organisation’s structure and the purpose of the audit. Ask what information the firm will need, who will manage the engagement, how queries will be handled and what timetable is realistic. The scope and fee should be understood before the work begins.
A practical working relationship matters. The organisation needs to provide information and understand which items remain outstanding. The auditor needs to explain requests and findings clearly to the people responsible for responding.
Koh & Lim Audit PAC
Koh & Lim Audit PAC provides audit services in Singapore for businesses and organisations. Its services include:
- Company statutory financial audits
- Group company audits
- Gross turnover and sales turnover audits
- Charity and non-profit organisation audits
- MCST audits
The firm also provides accounting support services, including bookkeeping, financial report compilation and GST submission support.
When making an enquiry, provide basic details such as your organisation type, financial year-end, the purpose of the audit, your reporting deadline and whether financial statements or accounting records have already been prepared. For a turnover audit, include the relevant tenancy or reporting instructions. For a charity, non-profit organisation or MCST, explain the organisation’s structure and any reporting requirements you have been given.
Contact Koh & Lim Audit PAC
Office: 7500A Beach Road, #09-324, The Plaza, Singapore 199591
Phone: +65 9062 9285
Email: Enquiry@kohlimaudit.sg
Website: kohlimaudit.sg