Introduction
Singapore legislation requires regulatory compliance on businesses and non-profit organisations unless they meet exempt criteria. Qualification for audit exemption will be determined by small company concept.

A company qualifies as a small company if:

(1) it is a private company in the financial year in question; and

(2) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:

(a) total annual revenue ≤ $10m;
(b) total assets ≤ $10m;
(c) no. of employees ≤ 50.

For a company which is part of a group:

(a) the company must qualify as a small company; and
(b) entire group must be a “small group”

to qualify to the audit exemption.

For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.

Where a company has qualified as a small company, it continues to be a small company for subsequent financial years until it is disqualified. A small company is disqualified if:

(a) it ceases to be a private company at any time during a financial year; or

(b) it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.

Where a group has qualified as a small group, it continues to be a small group for subsequent financial years until it does not meet at least 2 of the 3 the quantitative criteria for the immediate past two consecutive financial years.