Depending on the degree of non-compliance with the prescribed quality control standards, the PAOC (Firm Level) may order the accounting entity ("AE") to undertake remedial actions, and/or impose other orders.
Quality Control Review Orders
An order resulting from a QC review may include the following:
| Outcome of Quality Control Review | Orders by PAOC (Firm Level) | Details of Orders |
|---|---|---|
| Partially Satisfactory / Not Satisfactory | Submission of Root Cause Analysis and Remediation Action Plan(s) | Submission of the root cause analysis on the deficiency(ies) noted and the design of the appropriate remediation plan(s) to address the root cause(s). |
| Not Satisfactory | Restriction | Restriction on the AE's provision of public accountancy services in the manner that the PAOC (Firm Level) thinks fit. |
| Financial Penalty | Financial penalty on the AE, not exceeding the lower of the following: (a) S$250,000; or (b) 5% of the AE’s audit turnover during the period of 12 months ending on the last day of its financial year immediately before the start of the QC review1. | |
| Suspension | Suspension of the AE. While the AE remains suspended, the AE must not (a) provide public accountancy services in Singapore, (b) advertise or hold itself out or describe itself in any way to be an AE or to be authorised to provide public accountancy services in Singapore and (c) use in connection with its name the words "Public Accounting Corporation", its abbreviation or acronym, during the period of suspension. | |
| Revocation of Approval | Revocation of the approval granted to the AE. The PAOC may, after 2 years, consider any fresh application for approval. |
