In compliance with the Company Act, a Company is considered to be a small company and can be exempted from audit if it fulfils at least two out of the following three conditions:
1.) The total annual revenue of the company must not exceed S$ 10 million;
2.) The total assets of the company for the financial year end must not exceed S$ 10 million;
3.) The number of full-time employees at the end of the financial year must not exceed 50.
Group companies (holding and subsidiary companies) can also enjoy the audit exemption if they qualify as a small group.
To qualify as a “small group”, the group (comprising of all the companies) must fulfil two out of the following three conditions in the immediate two preceding financial years:
1.) The consolidated revenue must not exceed S$ 10 million;
2.) The consolidated total assets must not exceed S$ 10 million;
3.) The total number of employees of the group must not exceed 50.
Say it differently, for a group to qualify for the audit exemption, the individual subsidiary companies as well as the holding company, as a group, must fulfil the eligibility criteria of a small company.