Auditing and assurance standards are developed in the public interest in support of Singapore’s corporate governance and financial reporting framework. The auditing and assurance standards setting process must be robust and credible, which promotes public confidence in the process of setting auditing and assurance standards.

The Accounting and Corporate Regulatory Authority (ACRA) is responsible for the control and regulation of the practice of the profession of accountancy by public accountants and accounting entities. The Public Accounting Oversight Committee (PAOC) is responsible for assisting ACRA in the discharge of this duty, and this includes a responsibility to assist ACRA in determining, prescribing and reviewing the standards, methods and procedures to be applied by public accountants when providing public accountancy services, which includes the audit and reporting on financial statements. In undertaking this function, ACRA may adopt the standards issued by a professional body. ACRA adopts the standards issued by ICPAS and in doing so, undertakes oversight of the process followed by ICPAS in developing and issuing the standards.

ICPAS is the national professional accounting body in Singapore and sets the professional standards for its members. All public accountants must be members of ICPAS. ICPAS’s Auditing and Assurance Standards Committee (AASC) develops Singapore’s auditing and assurance standards in furtherance of the public interest in auditing and assurance.

Whereas Singapore is committed to the adoption of international auditing and assurance standards, and recognizing the need to align international standards with Singapore’s framework for corporate governance and financial reporting, PAOC has endorsed the AASC’s Strategic Direction, in relation to auditing and assurance standards, as:

(i) To develop high quality auditing and assurance standards, which serve the public interest.

(ii) In furtherance of (i), to adopt the auditing and assurance standards and revisions to the same issued by the International Auditing and Assurance Standards Board (IAASB), with such amendments as are necessary to serve the public interest in Singapore and to conform with Singapore’s regulatory environment and statutory requirements, taking into account the benefits and intention of aligning as closely as possible with international standards.

(iii) To monitor policy and implementation issues relating to the development of auditing and assurance standards internationally and in Singapore and to give consideration to the need for guidance or additional requirements where appropriate and in the public interest.

(iv) To engage with international bodies and promote Singapore’s interests in relation to auditing and assurance  standards and, where appropriate, take a leading role in representing regional interests.

(v) To raise public awareness and understanding of the standard setting process and the standards, in particular to deepen stakeholder engagement and promote confidence in auditing and assurance standards.

The composition of the AASC are:

The terms of reference for the AASC are established by the Institute of Certified Public Accountants of Singapore’s Council (ICPAS Council) and endorsed by the PAOC.  The terms of reference set out the objectives and process for setting the auditing and assurance standards to be adopted by ACRA as the auditing and assurance standards to be followed by Public Accountants.

The highlights of the previous AASC Meetings are as follows: