• Register
Return to: Home > News > Professional Bodies > Audit confidence increases in Singapore thanks to enhanced auditor’s report

Audit confidence increases in Singapore thanks to enhanced auditor’s report

Investor confidence has increased in Singapore since the adoption last year of the enhanced auditor report offering more insightful and details disclosures, according to a joint study by the local regulator and local and international professional bodies.

The study was produced by the Accounting and Corporate Regulatory Authority (ACRA), the Association of Chartered Certified Accountants (ACCA), the Institute of Singapore Chartered Accountants (ISCA) and Nanyang Technological University (NTU). It analysed enhanced auditor’s reports and annual reports of 180 entities listed on the Singapore Exchange as well as the views of 270 audit committees and investors.

The study highlighted that 40% of auditor’s reports contained more key audit matters (KAMs) than in the previous year financial statements. Eighty nine percent of surveyed investors said that they were more likely to read the auditor’s report before reading the financial statements as the KAMs identified significant issues.

Over half of the surveyed audit committees (56%) and investors (57%) indicated that they had developed moderately to significantly more confidence in audit quality.

Nearly three quarter (74%) of the 109 audit committees surveyed reported more robust discussions with management and auditors over KAMs. Also 52% of the surveyed audit committees said the process of considering KAMs and reviewing enhanced audit reports had resulted in their companies making moderate to significant improvements. Fifty seven percent felt they had gained deeper insights into the financial reporting risks of entities.

ISCA CEO Lee Fook Chiew said: “For a first-year of implementation, the results are indeed encouraging. At the same time, we see room for the enhanced auditor’s report to improve further to contribute to higher financial reporting quality and more meaningful engagement among the stakeholders.”

ACCA chief executive Helen Brand said: “Key Audit Matters were introduced to give better information on the audit process to investors. In addition to achieving that, our work also identified improvements all the way through the financial reporting chain: better conversations between management, audit committees and auditors, and higher quality financial reporting. This is encouraging and we hope will in time lead to greater realisation of the value of audit.”

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.