Acra adopts more risk-based approach to audit inspection

SINGAPORE'S Accounting and Corporate Regulatory Authority (Acra) has changed the way it inspects the public accountants under its charge - making the process a more risk-based one, focused on identifying the root causes of poor audit quality.

Explaining the change to its Practice Monitoring Programme (PMP) was Acra's chief executive, Kenneth Yap, speaking at the regulator's annual Public Accountants Conference on Wednesday.

"We looked for a new balance between, on the one hand, providing added assurance for investors and, on the other, reducing the regulatory burden on the audit profession. We gathered feedback from various quarters, including audit firms, and stakeholders who depend on our audit regulation.