Why is the Accountants Act being revised?

The legislation will be amended to improve oversight on audit firms and tighten the requirements on accountant registration.

The proposed revisions can be summarized into three focal points, according to the Accounting and Corporate Regulatory Authority (ACRA).

First, is to ensure good quality control frameworks for the audit and review of entities that have a significant public interest. Second is to enhance ACRA’s ability to inspect audit quality controls and policies of audit firms and require audit firms to improve, where necessary. And last, to make practical experience in key audit functions a core requirement for registration as a public accountant.

These set of changes have entered a six-week consultation phase ending July 4, 2012, feedback from which will be taken into consideration as the revised Accountants Act inches towards Parliament approval.

"As Singapore seeks to become a Global-Asia Financial and Business Hub, we must continue to build on our reputation for having a pro-business and trusted regulatory environment. Our public accountancy profession, as auditors of financial statements, must continue to engender a high degree of confidence from investors and businesses. The proposed amendments aim to promote audit quality, maintain confidence in audits and protect public interest," said ACRA in stressing the amendments' urgency.