CATEGORY: REPLIES TO FORUM LETTERS
The Straits Times, 16 June 2022
When any audit non-compliance is detected, Acra takes action depending on the severity
We refer to the letter by Mr Cheong Wing Kiat, "Erroneous audited accounts must be investigated, removed from archives and refiled" (June 9).
Directors are required to prepare financial statements in compliance with the prescribed accounting standards in Singapore. When we detect any non-compliance, we may, depending on the severity, take actions such as issuing advisory letters to directors, seeking remediation actions such as revision of past financial statements, issuing warnings or imposing composition sums, and/or prosecuting the directors.
If we are of the view that the financial statements should be revised to correct the non-compliance, we will request that the company revise, reaudit, and refile the revised financial statements with us.
To maintain transparency, the original financial statements will continue to be available publicly in our registry (with a note referring users to the revised financial statements), unless a court order is obtained to expunge the original financial statements.
We use a risk-based approach to select public accountants for practice review, taking into account the complexity of the audits done by them, the level of public interest involved in these audits, and any complaints received against them.
Ms Shirley Loo
Divisional Director, Corporate Development Division
Accounting and Corporate Regulatory Authority
The Straits Times, 9 June 2022
Erroneous audited accounts must be investigated, removed from archives and refiled
I refer to the article "Signs of corporate trouble and the costs of misconduct" (June 2).
When a complainant informs the Accounting and Corporate Regulatory Authority (Acra) that erroneous audited accounts had been filed, and Acra concludes that to be the case, it should ensure that the erroneous accounts are removed, corrected and refiled, and not let the same erroneous accounts remain uncorrected in the archives.
At the same time, Acra should start an investigation into the public accountant who had signed the erroneous audited accounts, and not wait for a separate complaint to be lodged.
Cheong Wing Kiat
