The Statement of Auditing Practice (SAP) 2 (Revised) Auditors and Public Offering Documents provides guidance on the auditor’s roles and responsibilities when engaged as a professional in a public offering exercise, and general principles governing public offering documents.
The key additions within this ED are the inclusion of a new section on “Confirmation on Internal Controls Required by SGX” and the new illustrative reporting auditor’s 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.
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).