Tue, Jul 14, 2020 - 12:54 PM THE Accounting and Corporate Regulatory Authority (Acra) has found that there is room for improvement in the qualit
Tue, Jul 14, 2020 – 12:54 PM
THE Accounting and Corporate Regulatory Authority (Acra) has found that there is room for improvement in the quality of financial statements issued by companies incorporated in Singapore.
Also, the authority has noted that the lack of deep knowledge and due care by preparers and directors were the root causes contributing to material non-compliances with accounting standards identified in the review, said Acra in a media statement issued on Tuesday.
In its latest assessment of the general state of financial reporting, Acra analysed the 2016 financial statements filed by 584 listed companies. Of these, 35 had been given modified audit opinions, with a total of 95 areas qualified or disclaimed by the statutory auditors. A majority were related to impairment of assets (34 occurrences, or 36 per cent), going concern assumption (19 occurrences, or 20 per cent) and limitations imposed on the scope of audit (13 occurrences, or 14 per cent).
Apart from analysing the 2016 statements, the authority also zoomed in on potential material non-compliances with accounting standards identified in selected 2016, 2017 and 2018 financial…