In this blog, we’ll explore the importance of IPC audits, key compliance requirements, and how to choose the right audit service provider in Singapore.
Why IPCs in Singapore Need Audit Services?
1. Compliance with Charity Regulations
IPCs must comply with the Charities Act and regulations set by the Commissioner of Charities (COC). Audits help verify compliance and ensure accountability in fund management.
2. Maintaining IPC Status
To retain IPC status, charities must meet the Governance and Transparency Standards (GTS) and undergo regular audits to confirm financial integrity.
3. Enhancing Donor and Stakeholder Confidence
Since IPCs receive tax-exempt donations, financial audits assure donors, grant providers, and regulators that funds are used appropriately.
4. Fraud Prevention and Risk Management
An independent audit helps identify financial risks, detect fraud, and improve internal controls, safeguarding the IPC’s reputation and sustainability.
Key Compliance Requirements for IPC Audits
1. Annual Financial Statements Audit
IPCs must prepare financial statements in compliance with Singapore Financial Reporting Standards (SFRS) and undergo annual audits if:
- Their annual income or expenditure exceeds S$500,000, OR
- Required by the Commissioner of Charities (COC).
2. Internal Control Assessments
Auditors evaluate financial controls, governance structures, and operational risks to ensure funds are properly managed.
3. Donor Fund Usage Review
An audit verifies that donor-restricted funds and government grants are allocated according to their intended purposes.
4. Governance and Compliance Audits
Auditors assess if the IPC adheres to the Code of Governance for Charities and IPCs, ensuring proper financial and operational management.
Choosing the Right IPC Audit Service Provider in Singapore
When selecting an IPC audit firm, consider these factors:
✅ Experience with Non-Profits and IPCs – Choose auditors familiar with IPC financial structures and regulations.
✅ Accreditation – Look for firms registered with ACRA and Institute of Singapore Chartered Accountants (ISCA).
✅ Comprehensive Audit Services – Ensure the firm provides financial audits, compliance checks, and governance reviews.
✅ Transparent Pricing – Request clear fee structures to avoid unexpected costs.
Final Thoughts
For IPCs in Singapore, audit services are essential to maintain compliance, transparency, and donor trust. Partnering with an experienced audit firm ensures that financial records meet regulatory standards, securing the organization’s long-term sustainability.