Issuance of the Final Set of Clarified Singapore Standards on Auditing

26 Jan 2010    Category: Media Releases

Joint Release by ICPAS and ACRA

 For Immediate Release

Issuance of the Final Set of Clarified Singapore Standards on Auditing 

1. Singapore, 26 January 2010 -- The Institute of Certified Public Accountants of Singapore (ICPAS) has issued the final set of the clarified Singapore Standards on Auditing (SSAs).  This follows approval by the Public Accountants Oversight Committee (PAOC) of the Accounting and Corporate Regulatory Authority (ACRA).

2. The clarified SSAs are based on their international equivalents, the clarified International Standards on Auditing (ISAs), which are issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC).  The basic objective of this international Clarity Project was to advance the process of global convergence and enhance the quality and uniformity of practice in audits worldwide.

3.The improvements arising from the Clarity Project broadly comprise the following:

• ·        Identifying the auditor’s overall objectives when conducting an 
•          audit in accordance with SSAs;
• ·        Setting an objective in each SSA and establishing the    
•          auditor's  obligation in relation to that objective;
• ·        Clarifying the obligations imposed on auditors by the
•          requirements of the SSAs and the language used to 
•          communicate such requirements;
• ·        Eliminating any possible ambiguity about the requirements
•          an auditor needs to fulfill; and
• ·        Improving the overall readability and understandability of the
•          SSAs through structural and drafting improvements.

 4.The new set of clarified SSAs goes into effect for audits of financial statements for financial periods beginning on or after 15 December 2009.  In practical terms, this means that they will be effective for most audits with a 31 December 2010 year-end. 

5.Mr Thean Lip Ping, Chairman of the PAOC, said: “ACRA and the PAOC are committed to the continued establishment of an internationally reputed regulatory framework for auditing in Singapore, and this includes the adoption of international standards. The new SSAs are based on the clarified International Standards on Auditing which have undergone a rigorous and consultative international process. The adoption of the clarified international standards would enable local and international investors to have continued confidence in audit reports provided by Singapore’s public accountants”.

6.ICPAS President Dr Ernest Kan said: “The clarified SSAs provide enhanced guidance to strengthen audit quality, thus contributing to a more robust financial reporting process.  Amongst others, improvements to the SSAs include communication with those charged with governance; the gathering and evaluation of audit evidence in relation to accounting estimates, including fair value estimates; auditing of related party relationships and transactions; and the use of the work of others, such as an auditor’s expert or other auditors in the context of audits of group financial statements”.

7.The AASC is made up of ten practitioners and nine public members appointed jointly by ACRA and ICPAS.   A feature of the AASC composition is to include practitioners with significant experience in the field of auditing and other assurance services, strengthened with representation from the business community, users and other stakeholder constituents of the accountancy profession such as the Singapore Exchange, Singapore Institute of Directors, and government agencies. 

 About ICPAS

 Established in 1963, Institute of Certified Public Accountants of Singapore (ICPAS) is the national accountancy body that develops, supports and enhances the integrity, status and interests of the profession.

The Certified Public Accountant Singapore (CPA Singapore) is a professional in accountancy, finance and business who has the relevant work experience in addition to a recognised accountancy qualification. CPAs Singapore serve every corner of the world in very industry. Many of them helm some of the most prominent local and international corporations.

ICPAS accords the CPA Singapore designation. Working closely alongside businesses, ICPAS connects its membership to an unmatched range of information resources, events, professional development and networking opportunities. Presently, there are more than 21,000 members making their strides in businesses across all industries in Singapore and around the world.

ICPAS’ international outlook and connections are reflected in its membership of regional and international professional organizations like the ASEAN Federation of Accountants (AFA), the Asia-Oceania Tax Consultants’ Association (AOTCA) and the International Federation of Accountants (IFAC).

For more information, please visit www.icpas.org.sg

About ACRA

The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and public accountants in Singapore. ACRA also plays the role of facilitator for the development of business entities and the public accountancy profession.

The mission of ACRA is to provide a responsive and trusted regulatory environment for businesses and public accountants. As at 31 December 2009, over 363,000 business entities and 897 public accountants practising in public accounting firms, accounting limited liability partnerships and accounting corporations are registered with ACRA.

For more information, please visit www.acra.gov.sg

Other information on the clarified International Standards on Auditing

The IFAC Clarity Center (http://web.ifac.org/clarity-center/index) provides a history of this international Clarity Project, and frequently asked questions and answers.

For media enquiries, please contact:

Ms Betsy Tan

Communications Manager

Institute of Certified Public Accountants of Singapore

Tel: 65 6749 8060 (DID: 6597 5608)

Fax: 65 6749 8061

Email: betsy.tan@icpas.org.sg

Mr Keeve Chan

Manager, Corporate Communications

Accounting and Corporate Regulatory Authority

Tel: 6325 6738

Email: keeve_chan@acra.gov.sg