Audit committees ‘play key role in corporate reporting’

SINGAPORE — Company directors who are audit committee members must take their responsibilities seriously as they play an important role in ensuring the integrity and quality of corporate reporting in Singapore, directors attending a conference were told yesterday.

The focus is now very much on audit committees, given their unique position in overseeing both company management and external auditors, Mr Kenneth Yap, chief executive of Accounting and Corporate Regulatory Authority (ACRA), said at the conference.

“Some of you may have recently received letters from ACRA in relation to compliance with accounting standards in your financial statements. This programme is critical because hitherto there had been little enforcement in relation to the board’s duty to ensure that financial statements provide a true and fair view of company’s finances,” he said.

Mr Yap acknowledged that there have been grouses about compliance requirements being time-consuming and costly.

Singapore regulators will do their best to ensure that surveillance and enforcement are focused on key risk areas, he added.

While no market is immune from financial scandals, Mr Yap said rules can be introduced to minimise the risk of unreliable or misleading financial reports being released.

“I think we can all agree that some measure of preventive medicine and tough love is necessary to ensure financial stability and market protection,” he added.