Charities in Singapore play a vital role in supporting social causes and community initiatives. However, with the responsibility of managing public funds comes the need for financial transparency, accountability, and regulatory compliance. This is where charity audit services in Singapore become essential. charity audit services singapore

A well-conducted charity audit helps organizations maintain donor trust, regulatory compliance, and operational efficiency. In this blog, we’ll explore the importance of charity audits, key compliance requirements, and how to choose the right audit service provider in Singapore.

Why Charities in Singapore Need Audit Services?

1. Compliance with the Charities Act & Regulations

Charities in Singapore must comply with the Charities Act, governed by the Commissioner of Charities (COC). Audits help ensure compliance with financial reporting and governance requirements.

2. Strengthening Donor & Public Trust

As charities rely on donations and grants, financial audits provide transparency, assuring donors that their contributions are managed responsibly.

3. Enhancing Governance & Internal Controls

An independent audit helps identify financial risks, detect fraud, and improve internal financial management, ensuring funds are used efficiently.

4. Meeting Grant & Funding Requirements

Many government grants, corporate sponsorships, and nonprofit partnerships require audited financial statements as a condition for funding.

Key Compliance Requirements for Charity Audits

1. Mandatory Annual Audits

Under Singapore regulations, charities must undergo an annual audit if:

• Their annual income or expenditure exceeds S$500,000, OR

• They are registered as an Institution of a Public Character (IPC) and must meet additional compliance requirements.

2. Financial Reporting Standards (SFRS & CAS)

Charities must prepare financial statements according to:

• Singapore Financial Reporting Standards (SFRS) – For larger charities.

• Charities Accounting Standard (CAS) – A simplified framework for smaller charities.

3. Governance & Transparency Audits

Auditors assess governance policies, internal financial controls, and risk management to ensure the charity operates ethically and efficiently.

4. Donor & Grant Usage Reviews

Audits verify that restricted funds, donor contributions, and grants are used strictly for their intended purposes.

Choosing the Right Charity Audit Service Provider in Singapore

When selecting a charity audit firm, consider:

✅ Experience with Non-Profits & Charities – Choose auditors who understand the unique challenges and regulatory framework of charities.
✅ Accreditation & Compliance Expertise – Look for firms registered with ACRA and Institute of Singapore Chartered Accountants (ISCA).
✅ Comprehensive Audit Services – Ensure the firm offers financial audits, governance reviews, and internal control assessments.
✅ Transparent Pricing & Service Scope – Seek clear fee structures and detailed audit services without hidden costs.

Final Thoughts

Charity audit services in Singapore are crucial for financial accountability, regulatory compliance, and donor confidence. Partnering with a reliable audit firm ensures that your charity meets legal obligations, secures funding, and operates with integrity.