XBRL Filing Impact on Auditing and Assurance Services in Singapore
Small companies that do not scale up to the total annual revenue are exempted from filing their returns and getting audited reports. However, all Singapore-incorporated companies that match or exceed the total annual revenue must file their financial statements in the XBRL format to the ACRA, Singapore.
XBRL is a simple, straightforward and easy-to-understand accounting language. When companies file financial information, they tag it to a taxonomy or a dictionary of facts and texts. With XBRL emerging as the most preferred format for financial reporting and filing worldwide, one will be curious about its impact on auditing and assurance services in Singapore.
The Impact of XBRL on Auditing and Assurance Services in Singapore
XBRL is an automated and standardised financial reporting language that allows companies to file their data in streamlined and accurate ways. Its positive impact on the auditing and assurance services in Singapore is as follows :
- Audit Quality: XBRL doesn’t replace the necessity for auditors; rather, it strengthens their position. Even when XBRL is employed, auditors remain crucial in providing confidence regarding the quality and completeness of financial statements. They are in charge of guaranteeing the accuracy and conformity to accounting requirements of XBRL-tagged data.
- Transparency: Companies may submit their financial accounts to stakeholders and regulatory bodies in a transparent environment, thanks to XBRL. Audits can be finished more quickly since auditors can begin their job earlier. This can be especially helpful in Singapore, where commerce is conducted quickly.
- Efficiency: The method of obtaining financial data from businesses is made simpler by XBRL. The necessity for manual data entry and the likelihood of errors is reduced because auditors can access and analyse financial statements more quickly. This increases the audit methods’ accuracy and dependability.
- Data Analysis: XBRL-tagged financial data can be mined for insights by auditors using data analytics tools. This allows them to conduct a more thorough analysis and spot patterns or irregularities in financial accounts, which can be essential for spotting fraud or mistakes.
Even with the use of XBRL, the role of auditors in the effectiveness of the reports remains undeniable. With XBRL transforming audit and assurance services in Singapore, it is now crucial for auditors to stay in sync with this technology to maintain their efficiency.
Choose DataTracks for XBRL Reporting
At DataTracks, we work hard and dedicatedly on data integrity, consistency and knowledge to provide our clients with the best. From meeting timelines to providing scalability and client support, our expert team is here to do everything for you.
Read more: XBRL filing requirements.
As a company ruling the market for many years, we have been the force behind the completion of 348,000 reports for 23,400 clients. To discover how we can help you streamline the filing of your financial information, contact us at +65 31582850 or email us at enquiry@datatracks.com.sg.