• Register
Return to: Home > News > Regulation > Singaporean regulators and institutes release retail investors’ guide to enhanced auditor’s report

Singaporean regulators and institutes release retail investors’ guide to enhanced auditor’s report

To help investors understand the enhanced auditor report (EAR) which is implemented as of this year, The Singaporean regulators, the Accounting Corporate Regulatory Authority (ACRA) and the Securities Investors Association Singapore (SIAS) in collaboration with the Institute of Singapore Chartered Accountants (ISCA) have published a guide which helps retail investors to identify important risk areas in financial statements of listed companies and understanding how these areas are audited.

The EAR was approved by ACRA in July 2015 for audits of financial statements for periods ending on or after 15 December 2016. It introduced two changes: First auditors are now required to communicate key audit matters in their report on the financial statements of listed entities, marking a move away from the traditional pass/fail audit opinion.

The second important change relates to the aspect of going concern. Previously when a material uncertainty over a business's going concern arose, auditors were required to highlight this matter in their report. Under the enhanced standards auditors will now have to ensure that the business has made adequate disclosures in its financial statements regarding management's judgement and assessment on going concern.

The guide published by ACRA, SIAS and ISCA gives an explanation of the different types of audit opinions, how unfavourable audit opinions could be identified, and the issues investors should look out for. The guide also includes a list of relevant questions with regards to key audit matters that investor could consider asking to directors, management and auditors during annual general meetings.

The guide is available here.

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.