Singapore reviews audit exemption thresholds for small companies
ACRA announced on 26 February 2026 a review of Singapore's audit exemption framework to cut costs for small companies. It will consult on raising the S$10 million revenue and asset thresholds, unchanged since 2015, and on letting some subsidiaries qualify even if their group does not. Industry consultations ran from March 2026.
The Accounting and Corporate Regulatory Authority (ACRA) said on 26 February 2026 that it is reviewing the audit exemption framework introduced in 2015.
The current rules
A private company is exempt from audit if it meets at least two of three criteria in each of the two preceding financial years: revenue up to S$10 million, total assets up to S$10 million, and 50 employees or fewer. A subsidiary qualifies only if its whole group meets the test on a consolidated basis.
What ACRA will consult on
- Raising the revenue and asset thresholds, which ACRA noted Australia, the UK, New Zealand and Malaysia have done.
- Letting subsidiaries qualify under specific conditions even if their group does not meet the thresholds.
Whatever changes, companies must keep proper accounting records and prepare financial statements to the prescribed standards, and shareholders holding 5% or more can still require an audit.
Timing
Targeted industry consultations from March 2026, with a public survey open until 17 April 2026.
Who is affected
Singapore private companies and groups near the audit thresholds, and their finance teams and company secretaries.