Auditors zoom in on charities and public institutions with ACRA’s new accounting rules

Stricter professional guidelines will be rolled out.

Singapore’s public accountants and accounting entities will have to adhere to stricter Code of Professional Conduct and Ethics starting February 2015, the Accounting and Corporate Regulatory Authority (ACRA) revealed.

Under the new code, public accounting entities will be given higher independence standards to all audits and reviews of public interest entities (PIEs), large charities and large institutions of a public character, as opposed to only audits of listed and public companies currently.

The new code also carries new requirements to further safeguard the independence of auditors. These include the identification of a Key Audit Partner, who would make key decisions or judgments on significant matters with respect to the audit.

Other changes include the removal of certain SG provisions to align with international benchmarks. Review engagements will also be subject to the same independence requirements as audit engagements.

“In this era of economic volatility and a rapidly evolving corporate landscape, the Code is a vital set of guiding principles for public accountants to rely on and enable them to make the right decisions when faced with conflicting choices between economic interests and ethical considerations,” noted ACRA.