Small exempt private companies ("EPC") with turnover of not more than S$5 million can opt for audit exemptions. However, they are still required to prepare a full set of financial statements (compilation report) in accordance to the Singapore Financial Reporting Standards (“FRS”) for Annual General Meeting and for with Accounting and Corporate Regulatory Authority (“ACRA”).

Your company may be exempted for audit if:

• Your company is a Private Exempt Company ("EPC"), which means no corporate shareholder in the company and the number of shareholders in the company is not more than 20.
• Your company's annual revenue does not exceed $5 million
• No request for audit by shareholders who represent 5% or more of a company's ordinary shares, or
• No request for audit by banks or other creditors/financial Companies

A compilation report will give you the comfort that the information is compiled with professional competence and due care. It is also sufficient for income tax filing purpose. However, a Compilation Engagement is not as "Stringent" as an audit. The fee for a Compilation Engagement is lower than the audit fee.