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New guide to help investors identify risks, understand audit opinions
A NEW guide is now available free of charge to help investors invest more wisely.
It is jointly produced by the Accounting Corporate Regulatory Authority (ACRA), the Institute of Singapore Chartered Accountants (ISCA) and the Securities Investors Association Singapore (SIAS). It is aimed at helping investors identify significant risk areas in listed companies' financial statements and understand how these areas are audited.
It focuses on key matters that auditors of listed companies are now required to provide in their reports, following the adoption of the enhanced auditor reporting standards with effect from Dec 15, 2016. The upcoming annual general meetings (AGMs) season will see all listed entities in Singapore incorporating the enhanced auditor's report (EAR) for the first time.
The guide explains the different types of audit opinions, how unfavourable audit opinions could be identified, and the issues investors should look out for. It also includes a list of relevant questions relating to key audit matters that investors could consider raising with directors, management and auditors during AGMs.
Members of the public can download a copy of the guide from SIAS website at www.sias.org.sg/ehar.