In the wake of advancement in payments and banking technology, it is becoming more complex for audit firms to review the financial statements of the companies. The advent of quick payment modes such as e-wallets and Unified Payments Interface (UPI) has opened up new channels for the money to flow within the economy, inviting the need for more advanced audit services in Singapore. The growth of the corporate sector and the social sector has also increased the work of the Singapore audit firms while expanding the scope for them to offer more audit services.
Auditing plays an essential role in the governance of the corporate and the social sector, while also keeping the government under check to prevent any misuse of the taxpayers’ money. While the scams and frauds have not been uncommon in the government sector, they can also be found even in the corporate as well as the social sector. While the CAG can audit the governmental organizations, the private companies usually hire audit firms offering credible audit services.
With the rising popularity of entrepreneurship, the nation has seen a steep increase in the inception of new start-ups, and hence competition in various sectors has also seen a tremendous rise. With the rising competition, the companies can come up with new tactics to save taxes through unlawful means. Hence, the Singapore accounting firms need to be more cautious with their approach to conduct the reviews when they offer audit services to any company. However, even if the intentions of the corporate organizations are not wrongful, there can still be flaws in the financial statements which could make them end up paying hefty fines. Hence, it is always advisable that the corporate companies invest in availing good audit services from a good audit firm to ensure that they are still on a safe side.
Such problems, however, are not limited only to the corporate sector; the social sector could also be a breeding ground for the people with the desire to earn loads of money while refraining from paying tax to the government.
The government offers various tax exemption provisions to the non-profit sector as it believes that the non-governmental organizations help in solving social issues. India has seen a boom in the social sector with the creation of a massive number of NGOs across the country. However, because of failure in adhering to regulatory guidelines for the use of funds and grants, a lot of them have been shown a red flag with over 33,000 NGOs losing their license post-2014. Hence, the social sector would always require audit firms to provide reliable accounting services to ensure that the exemptions given by the government to the non-profit sector are not misused.
While the ever-rising trend of technology making payments and banking more accessible, and the rapidly increasing number of start-ups and Non-profit Organizations would certainly boost India’s growth, the need for good audit firms and more advanced audit services would also keep on rising.
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