Singapore accountancy bodies launch initiatives to support small, medium audit firms

HELP is on hand for small and medium-sized audit practices (SMPs) in Singapore, to aid them in raising audit quality, upskilling their audit professionals and strengthening their digital capabilities.

Initiatives, including a newly launched SMP Centre of Excellence – that will provide SMPs with a holistic platform for initiatives, services and resources – were announced by the Institute of Singapore Chartered Accountants (ISCA) and the Singapore Accountancy Commission (SAC) at the ISCA Practitioners Conference for audit professionals on Friday (Oct 28).

These efforts, supported by the Accounting and Corporate Regulatory Authority (Acra), are intended to provide SMPs with much-needed guidance, support and resources to build capabilities and enhance their competitiveness.

“SMPs make up 98 per cent of the total number of audit firms in Singapore. By supporting SMPs in the key areas of digitalisation, quality management, practice management and talent management, we aim to empower them to accelerate their growth in a dynamic business environment,” said ISCA president, Teo Ser Luck.

It is hoped that the Centre of Excellence will be a one-stop online hub catered to the varying needs of audit practices, and that it will become the go-to platform for SMPs when they need support and resources.

SMPs will be able to tap on the centre’s resources – such as technical publications and resources – to raise their audit quality; they will also be able to use it to strengthen their digital capabilities, by being able to assess their digital readiness via a self-assessment test, and obtain information on sector-specific solutions and funding schemes. The centre will also allow them to upskill their audit professionals through certification programmes and training courses, and contains initiatives to help SMPs enhance their offerings and expand overseas.

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In addition, ISCA will be rolling out a Voluntary Compliance Programme to help audit firms comply with the new quality management standards that take effect in December; under this programme, the professional body will certify firms that pass its firm-level quality management review. 

SAC has also set aside S$2 million to support the SMPs in their digitalisation efforts under the Productivity Solutions Grant (PSG). The PSG aims to raise the level of baseline digital adoption among SMPs to 70 per cent by 2025.

“SAC recognises that small and medium-sized practices are often challenged with limited resources to acquire new skills and technology to scale up. Leveraging more on technology will enable them to offer greater value-added services and improve productivity,” said SAC chief executive, Evan Law. “Digital transformation and the development of accountancy talent will provide firms with the competitive edge needed to thrive in today’s digital economy.”