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Enhanced Statement of Auditing Practice 2, Auditors and Public Offering Documents

SAP 2 (Revised 2021) provides guidance on the reporting auditor’s roles and responsibilities when engaged as a professional in a public offering exercise, and general principles governing engagements relating to public offering documents.

The key additions within this SAP are the inclusion of a new section on “Confirmation on Internal Controls Required by SGX” and the new illustrative auditors’ report on internal controls under Example 7 of Appendix 1. In connection with the issuance of a prospectus by an issuer, SGX Listing Rule 246(9) states that the application must include auditors’ report to management on the internal control and accounting systems of the issuer and its principal subsidiaries. Where there are weaknesses in an issuer’s internal control and accounting systems, SGX may require a confirmation from the auditors that the weaknesses are not material.

There were divergence in practice among reporting auditors when issuing such reports on the issuer’s internal control and accounting systems. Hence, the key additions in this SAP would provide the required guidance on what reporting auditors should comment on in their report on internal controls, facilitate consistency across professional accountancy firms and benefit the profession as a whole. 

 A summary of the key additions are as follows:

  • Paragraphs 49 to 52 – New section on Confirmation on Internal Controls Required by SGX;
  • Additional illustrative example report on internal controls (Appendix 1 Example 7).

Effective date 

The enhancements are effective for reports dated on or after 1 June 2021.


Please click below for the revised Statement.