The findings in this ACCA report finds that many SMPs are still deriving significant portion of their revenue from statutory audit work. Of the respondents who are anticipating significant expansion in operations in the near future, a good 79% appear to be expecting the expansion to be fuelled by statutory audit work as well.
With the potential increase in the audit exemption threshold as proposed by the Steering Committee to Review the Companies Act, SMPs need to start considering alternatives to enhance business.
- A substantial portion of the respondents still derive their revenue mainly from statutory audit work.
- 2 in 5 of the respondents anticipate significant expansion in operations in the next 3 years, with the majority (79%) expecting the expansion to be achieved through their statutory audit services.
- With an increase in the audit exemption threshold currently being considered, 40% of the respondents responded that they will compensate the expected decline in revenue from statutory audits with other works like compilation engagements, taxation and other accounting services.
- Inability to attract a sufficient number of competent staff is still cited as the main constraint to growth of SMPs in S ingapore (74%).
- While most SMPs recognise that providing services outside S ingapore provides an avenue for future growth for their practices (76%) and helps diversify risks (57%), a great majority of SMPs (72%) source 5% or less of their revenue from clients located outside Singapore currently.