When it comes to conducting a business audit in Singapore, preparation is everything. A smooth and successful audit doesn’t begin when the auditor walks through your doors—it starts weeks, if not months, earlier with proper documentation and internal readiness.
Whether your company is legally required to undergo an audit or voluntarily engaging one for grants, investors, or compliance, having the right documents on hand will speed up the process and reduce stress. In this guide, we’ll provide a comprehensive audit checklist tailored to Singapore SMEs so you can confidently prepare and ensure a hassle-free audit experience.
1. Why Proper Preparation for an Audit Matters
Audits are not just about ticking boxes—they are about verifying the accuracy and reliability of your financial information. A lack of preparation can lead to:
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Delays in the audit process,
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Additional audit fees for time spent chasing incomplete records,
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Red flags that may trigger regulatory scrutiny,
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Qualified audit opinions, which may harm your company’s reputation.
By ensuring your documents are well-organised, complete, and compliant with Singapore Financial Reporting Standards (SFRS), you can streamline the audit process significantly.
2. Core Financial Documents Required
These are the minimum essential documents your auditor will require to begin the audit:
✅ Trial Balance
A detailed list of your company’s ledger accounts and balances as of your financial year-end.
✅ General Ledger
The full record of all financial transactions that supports your trial balance. It should be detailed and broken down by month.
✅ Audited or Unaudited Financial Statements (Prior Year)
Helps the auditor compare performance and detect unusual changes or inconsistencies.
✅ Profit and Loss Statement
Shows revenue, cost of sales, gross profit, operating expenses, and net profit.
✅ Balance Sheet
A snapshot of your business’s assets, liabilities, and equity as of year-end.
✅ Cash Flow Statement
Breaks down your cash movement into operating, investing, and financing activities.
3. Bank-Related Documentation
To verify your company’s liquidity, cash flow, and reconciliations, prepare:
✅ Bank Statements
For all company bank accounts for the entire financial year.
✅ Bank Reconciliation Statements
These should show how the bank statement balances reconcile to your general ledger balances.
✅ Cheque Books and Payment Vouchers
Helps auditors trace significant disbursements and ensure proper approval and documentation.
4. Revenue and Sales Documentation
Auditors need to validate the legitimacy and accuracy of your reported revenue. Be ready to submit:
✅ Sales Invoices
For major customers and recurring revenue streams.
✅ Sales Contracts or Agreements
For long-term or recurring service arrangements.
✅ Receipts or Delivery Orders
That support the completion and delivery of goods/services.
✅ Accounts Receivable (AR) Aging Report
A breakdown of outstanding receivables by customer and age (e.g., 30/60/90+ days).
5. Expenses and Purchases
Just like revenue, expenses need supporting evidence to ensure accuracy and proper classification.
✅ Purchase Invoices
From suppliers and vendors.
✅ Goods Received Notes (GRNs)
Where applicable, especially in product-based businesses.
✅ Payment Vouchers
To show authorization of payments.
✅ Accounts Payable (AP) Aging Report
To detail what the company owes and how old those payables are.
6. Payroll and Staff-Related Documents
For most SMEs, payroll is one of the largest expenses. Auditors will review:
✅ Payroll Registers
Showing monthly salary, CPF contributions, bonuses, and deductions.
✅ Employment Contracts
Especially for directors, key executives, or foreign hires.
✅ IR8A Forms and CPF Submission Records
Ensures tax and social security compliance.
✅ Leave Records or Time Sheets
If variable or hourly-based wages are paid.
7. Tax-Related Documents
Auditors must ensure your tax positions are accurately reflected. Be prepared to provide:
✅ Form C / Form C-S
Filed with IRAS for the audit year.
✅ Notice of Assessment (NOA)
From IRAS indicating accepted tax computations.
✅ GST Returns (F5 Forms)
If your business is GST-registered, all quarterly filings and reconciliations.
✅ Deferred Tax Calculations
If applicable, especially in medium or large entities.
8. Fixed Assets and Depreciation
If your business owns machinery, equipment, or other long-term assets:
✅ Fixed Asset Register
A detailed list of all assets, purchase dates, values, and depreciation.
✅ Purchase Invoices for Assets
Proof of asset acquisition.
✅ Depreciation Schedule
Based on useful life and accounting policy.
9. Inventory and Stock Documentation
If you hold stock or inventory:
✅ Inventory Listing at Year-End
Itemised and valued in accordance with accounting standards.
✅ Stock Take Reports
If a physical stocktake was conducted.
✅ Inventory Valuation Method
E.g., FIFO, weighted average—auditors need to understand your approach.
10. Loan, Lease, and Financing Documents
Auditors will assess any financial obligations or commitments. Be ready with:
✅ Loan Agreements
Including interest rates, repayment terms, and collateral.
✅ Bank Loan Statements
Showing outstanding amounts and payments made.
✅ Lease Agreements
For office space, equipment, or vehicles.
✅ Hire Purchase Agreements
If you finance asset purchases via HP.
11. Corporate Governance and Legal Documents
For compliance purposes and internal controls:
✅ Board Resolutions and AGM Minutes
Especially for approval of financial statements and dividends.
✅ Company Constitution / M&AA
If amended during the year.
✅ Related Party Disclosures
Transactions with directors, shareholders, or affiliated companies.
12. Bonus: Accounting Software Access
Auditors may request view-only access to accounting software like Xero, QuickBooks, or MYOB for efficient data extraction and analysis. Granting this early speeds up the fieldwork process.
Tips for Organising Your Audit Files
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Sort by Month: Organize documents chronologically.
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Use Cloud Storage: Platforms like Google Drive or Dropbox make sharing and version control easier.
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Label Clearly: Use consistent naming conventions (e.g., “Invoice_ClientA_Jan2024.pdf”).
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Maintain Soft and Hard Copies: Always have backups in case one set is unavailable.
Conclusion
Preparing for a business audit in Singapore doesn’t have to be overwhelming. With the right checklist, a bit of discipline, and proactive planning, you can significantly reduce stress, prevent delays, and ensure your audit process is smooth and efficient.
Proper documentation also reflects well on your company’s professionalism and can improve your credibility with investors, banks, and regulatory bodies.
Need help with your SME’s audit preparation?
At Koh & Lim Audit PAC, we not only conduct audits—we guide you through what to prepare, how to organise your records, and how to get the most out of your audit process.
📞 Call us at +65 98638665
📧 Email: Tommyksh@kohlimaudit.sg
🌐 Visit: https://kohlimaudit.sg
Let’s ensure your next audit is fast, compliant, and stress-free.
