How to Decide Which Audit Firm to Choose for Your Singapore Audit

Choosing the right audit firm for your business in Singapore is a crucial decision. A good auditor ensures your financial statements are accurate, your company stays compliant with regulatory requirements, and stakeholders—including investors and banks—can trust your numbers.

But with so many audit firms in Singapore, ranging from Big Four giants to boutique local firms, how do you decide which one is right for you?

In this article, we’ll walk you through the key considerations when selecting an audit firm, helping you make a smart and informed decision that suits your company’s needs, budget, and goals.

1. Know Your Audit Requirements

Before you evaluate firms, clarify whether you actually need an audit.

In Singapore, audit is mandatory for companies that meet two out of three of the following:

• Annual revenue > S$10 million

• Total assets > S$10 million

• More than 50 employees

If your company falls under the “small company exemption” (i.e., below the above thresholds), you may not be legally required to be audited—but you might still choose to undergo a voluntary audit for credibility, investor confidence, or bank loan applications.

Understanding your legal obligations and internal goals will influence what kind of audit firm you need.

2. Define the Type of Auditor You Need

Not all audit firms are the same. They differ in size, specialization, and service style.

Broadly, your options include:

a) Big Four Firms (PwC, EY, Deloitte, KPMG)

• Best for large enterprises, MNCs, listed companies

• Expensive, brand-name assurance

• Extensive resources and sector-specific expertise

b) Mid-Tier Firms

• Often affiliated with international networks (e.g., BDO, RSM, Baker Tilly)

• Suitable for medium-sized businesses, international clients

• Lower fees than Big Four but still solid quality

c) Local Audit Firms

• Best for SMEs, startups, charities, and societies

• Competitive pricing

• Personalized service and faster turnaround

Knowing your company’s size and complexity helps you choose the right tier of auditor.

3. Evaluate Qualifications and Accreditations

In Singapore, only Public Accountants registered with ACRA are allowed to perform statutory audits.

Check that the audit firm:

• Has a valid public accounting license

• Is listed in ACRA’s public accountant register

• Is a member of ISCA (Institute of Singapore Chartered Accountants)

You may also consider firms approved by:

• MOE (Ministry of Education) for school audits

• MCSTs and Town Councils for real estate and public housing audits

• IPC and Charity audits under Commissioner of Charities (COC)

This ensures that the firm is legally compliant and experienced with regulatory frameworks specific to your sector.

4. Assess Industry Experience

Industry knowledge is a major differentiator in audit quality. An auditor who understands your sector can:

• Ask more relevant questions

• Spot anomalies quickly

• Provide meaningful recommendations

• Navigate regulatory and compliance challenges

For example:

• F&B businesses face unique issues with inventory and cash management

• Construction firms deal with long-term contracts and project accounting

• Non-profits must comply with charity accounting standards

Ask prospective audit firms about their past or current clients in your industry and their familiarity with industry-specific standards.

5. Consider Audit Firm Reputation

Reputation matters, especially when audited financial statements are used to:

• Apply for loans

• Pitch to investors

• Satisfy regulators or overseas stakeholders

A reputable firm enhances the credibility of your reports.

Ways to assess reputation:

• Client testimonials and online reviews

• Referrals from your business network

• Number of years in business

• Awards or recognitions

A well-regarded audit firm can serve as a “stamp of trust” for your stakeholders.

6. Check Their Approach to Client Service

A smooth audit depends on good communication and collaboration.

Evaluate:

• How responsive is the firm during inquiries?

• Will you have direct access to the engagement partner?

• Do they offer an online client portal or document tracker?

• How proactive are they in identifying issues before they escalate?

Some audit firms operate like bureaucracies, while others offer hands-on, dedicated service. Choose a firm whose communication style matches your expectations.

7. Ask About Turnaround Time

Delays in audit completion can affect your business in many ways:

• Missed statutory filing deadlines (e.g. with ACRA and IRAS)

• Late financial reporting to investors

• Delayed loan or grant approvals

Ask the firm:

• How long do they typically take for companies of your size?

• When is their peak season?

• What internal deadlines should you follow?

Firms with high workloads or under-resourced teams may struggle to deliver on time.

8. Evaluate Audit Fees (But Don’t Choose Solely on Price)

Audit fees vary widely depending on:

• Company size and revenue

• Number of entities consolidated

• Industry complexity

• Time spent and audit risk

While cost is a legitimate factor, don’t pick the cheapest firm blindly. A very low quote might indicate:

• Inexperience

• Poor audit quality

• Limited client attention

Instead, evaluate value: Are you getting expert insights, timely service, and peace of mind for the price?

9. Look for a Long-Term Relationship

Audit is not just an annual event—it’s an ongoing relationship. Over time, a good auditor will:

• Understand your business better

• Provide valuable suggestions

• Help you improve internal controls and processes

Look for a firm that:

• Treats you as a long-term partner, not a one-time client

• Supports your growth, whether local or international

• Updates you on regulatory changes

Switching auditors too frequently also raises questions from regulators and investors, so choose wisely from the start.

10. Request a Proposal or Consultation

Finally, narrow down your shortlist and request:

• A formal proposal (scope, fees, timeline)

• A short consultation call or meeting

• A sample of prior experience or engagement letter

This gives you a chance to assess the firm’s professionalism, transparency, and cultural fit with your team.

Ask direct questions like:

• “Who will be working on our audit?”

• “What’s your experience with Singapore Financial Reporting Standards (SFRS)?”

• “How do you ensure independence and objectivity?”

A trustworthy audit firm will answer confidently and clearly.

Conclusion

Choosing the right audit firm in Singapore isn’t just about ticking a compliance box—it’s a strategic decision that can influence your business’s credibility, financial health, and stakeholder trust.

To make the right choice:

1. Know your audit requirements

2. Choose a firm that fits your company size and industry

3. Check licenses, reputation, and credentials

4. Look for value beyond price—such as responsiveness, industry experience, and long-term support

Whether you’re a startup seeking investor confidence, an SME needing accurate reporting, or a growing business preparing for IPO, the right audit partner can make all the difference.

Need help deciding which audit firm is right for your business? Reach out to us for a free consultation and let us guide you toward a smooth, compliant, and value-driven audit experience.

Right audit partners at Koh Lim PAC