How it works
A private company is exempt from audit if it meets at least two of three criteria for each of the past two financial years: revenue of S$10 million or less, total assets of S$10 million or less, and 50 or fewer full-time employees. If it belongs to a group, the entire group must also meet two of three on consolidated numbers, foreign entities included. ACRA announced a review of the thresholds in February 2026.
Worked example
A Singapore subsidiary with S$3 million revenue, S$12 million assets and 20 staff passes on its own (two of three), but its group with S$80 million revenue and 300 staff fails. An audit is required.
Questions people ask
What are the audit exemption criteria?
Two of three: revenue up to S$10 million, assets up to S$10 million, up to 50 full-time employees, for the past two years.
Does the group test include foreign entities?
Yes, on the parent's consolidated numbers.
Are the thresholds changing?
ACRA is reviewing them; nothing has changed yet.
Sources
- ACRA: Audit exemptions and the small company concept
- ACRA: Review of the audit exemption framework (26 February 2026)
Last checked 1 November 2026. General information only, not advice for your situation. Speak to a qualified adviser before you act.