All businesses no matter how small or big need to go through auditing. Singapore conducts random audit checks through IRAS for GST-registered companies. This is done to ensure that all Singapore businesses are in alignment with the tax laws of the State.
Reading guide
- 1 Overview of the Auditing Process
- 2 Going Through The Process Of Auditing
- 3 Below Is A List Of Information Required By The Auditors:
- 4 Some key points that you can keep in mind include:
- 5 Types Of Audits You Should Know
- 6 There are 4 types of audits conducted by agencies which are as follows:
- 7 Reasons for Knowing GST registration
- 8 In Conclusion
Overview of the Auditing Process
Now before you jump the gun and dive in straight into the audit process, you first need to understand it. This will help you get a better insight into what auditing is all about and how well you can improve on gaps found in your taxing process.
Auditing is the process of accessing and reviewing financial statements along with your business strategic and operational activities and checking if they are in line with the State tax laws. If your company gets selected for a tax audit then you can always rely on companies dedicated to helping its clients with tax investigations and audit requirements.
Going Through The Process Of Auditing
They will go through your company’s accounts, identify loopholes or errors and help improve the auditing structure of your business. You need not have to worry about unnecessary paperwork as all this is handled by their professional team.
Audits can be done through emails, phones, or field visits. You need to keep all supporting documents handy before your audit process.
Below Is A List Of Information Required By The Auditors:
- Complete details of your business operations
- All documents related to the financial transactions of your business
- Sales and purchase listings to tally the figures shared on your GST returns
- The completed Audit Self-Test Kit which is a pre-filing checklist
When it comes to auditing, you need to be as transparent with the auditors as possible. If you hide anything and if this comes out during the audit, you might be liable for severe punishment or penalty.
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Some key points that you can keep in mind include:
- Ensure that you allow auditors to have access to all information about your business
- Allow them to talk to your company staff
- Ensure that they have a separate room for conducting the audits
- Answer all their questions sincerely and to the best of your knowledge
Types Of Audits You Should Know
There are 4 types of audits conducted by agencies which are as follows:
- Strategic, Operational, and IT Audit
- Financial Audit
- Internal Audit
- External Audit
Strategic, Operational, and IT Audits are audits performed to review and evaluate the strategic, operational, and IT assets of your business. Such audits help in understanding the different strategic plans adopted by your business, how your organization conducts its business and what are the systems and procedures in place to reach your organizational goals.
A financial audit is conducted to evaluate the financial statements of your company. Internal audit is conducted within your business. This gives you a better chance at evaluating the loopholes in your existing systems and improving upon them
External audits are conducted by third-party agencies to determine whether all your accounting records are complete and accurate.
Reasons for Knowing GST registration
- Business activities and information
- Documents supporting business transactions
- Purchase and sales listings to confirm the precision of the statistics reported within GST returns
- Reconsiderations of the company’s accounting system as well as the transactions that are recorded
- Checklists by the company
In Conclusion
Auditing is a great way to promote best practices in your organization. It can also help to identify potential opportunities and help resolve complex cross-functional issues.
