Is a type of private limited company which can satisfy any 2 of the 3 conditions:
(1) annual turnover of not more than S$10 million; or
(2) total asset not exceeding S$10 million; or
(3) not more than 50 employees.
No audit is required if a company is classified as a small company.
Small company concept is very good at lowering the cost of the company’s audit fees. However, if a company is owned by other corporation then, the small company concept must be applied to that group. If the group cannot satisfy any two of the above 3 conditions, then the company needs to be audited.