ACRA issues Financial Reporting Practice Guidance No. 1 of 2022 on areas of review focus for FY2022 financial statements

9 November 2022

On 4 November 2022, the Accounting and Corporate Regulatory Authority (“ACRA”) issued Financial Reporting Practice Guidance No. 1 of 2022 on Areas of Review Focus for FY2022 Financial Statements (“Practice Guidance”) highlighting financial reporting areas that may require closer attention by directors in the review of the FY2022 financial statements. To drive sustainable audit quality, ACRA has expanded the scope of the guidance to cover areas that Audit Committees should pro-actively engage their external auditors on to include the auditor’s assessment of risk, use of technology in audits, auditor independence, findings from ACRA’s audit inspections and audit quality indicators.

ACRA’s proposed areas of review focus for FY2022 financial statements are:

• Accounting impact from geopolitical uncertainties
• Accounting impact from macroeconomic uncertainties
• Accounting impact from climate change movements
• Risk assessment of companies, including fraud risk
• Multi-location audits of group companies
• Use of technology in audit
• Independence of an auditor
• Increasing transparency of audit inspection findings

The Practice Guidance is available from the ACRA website www.acra.gov.sg.

Reference materials

The following are available from the ACRA website www.acra.gov.sg:

• ACRA announcement: Financial Reporting Practice Guidance No. 1 of 2022 - Areas of Review Focus for FY2022 Financial Statements
• Financial Reporting Practice Guidance No. 1 of 2022 - Areas of Review Focus for FY2022 Financial Statements