Acra Oversight Report

PRACTICE MONITORING PROGRAMME SECOND PUBLIC REPORT July 2008

The Accounting and Corporate Regulatory Authority (ACRA) is Singapore’s corporate regulator as well as the independent regulator for public accountants. It was formed from the merger of the Registry of Companies and Businesses (RCB) and the Public Accountants Board (PAB) on 1st April 2004. ACRA’s primary role is that of the regulator of businesses and public accountants. Its secondary role is that of a facilitator of businesses. ACRA plays an important role in facilitating doing business in Singapore but our main role remains that of a regulator. In line with the need to create a responsive and trusted regulatory environment, ACRA seeks to facilitate a pro-enterprise environment. ACRA is committed to continually reviewing the legislation and reducing the regulatory burden to be in tune with business needs and international developments and to help promote entrepreneurship and enterprise. To this end, ACRA sees confidence in corporate reporting and governance as vital to the healthy functioning of businesses and the market, and making a significant contribution to the overall economy and Singapore’s competitiveness in international markets.

CONTENTS

Page

One

Executive Summary and Overall Conclusions

3

Two

Introduction

7

Three

Firm-Level Reviews of Accounting Entities that Undertake Public Interest Entity Audits

10

Four

Inspections of Public Accountants Carrying Out Public Interest Entity Audits – Engagement Reviews

20

Five

Inspections of Public Accountants Carrying Out Non-Public Interest Entity Audits - Engagement Reviews

25

Six

Conclusion

35

1

“Published July 2008 All rights reserved. No part of this publication may be produced or transmitted in any form or by any means, including photocopying and recording, without the prior written permission of the Accounting and Corporate Regulatory Authority (ACRA).”

2

ONE – EXECUTIVE...