Do I Really Need an Audit or Just a Good Accountant?
As a business owner, you have probably wondered: Do you really need an audit, or is it fine to let your accountant handle everything?
It’s an interesting question, especially when managing costs, compliance, and business growth is already so complicated and time-consuming. Here, we will clarify the difference between an accountant and an auditor, the legal requirements regarding them, and how to decide what your business actually needs.
Not Sure If You Need an Audit?
Download the FREE Business Audit Readiness Checklist and find out what your business really needs — before costly mistakes happen.
Accountant vs Auditor: What’s the Difference?
An accountant works for the business owner. Their purposes are to support the financial management of the company, such as maintaining proper records, ensuring compliance, and providing ongoing advisory support. They mainly focus on bookkeeping, payroll processing, tax filings, and financial guidance continuously throughout the financial year. The output of an accountant’s work includes management accounts, GST or SST submissions, and corporate tax filings.
Meanwhile, an auditor works for the shareholders and other external parties, such as the bank or the government. Their purpose is to provide an independent examination of the company’s financial records. Their jobs mainly focus on reviewing financial statement accuracy, evaluating internal controls, and verifying compliance, typically on an annual basis. The output of an auditor’s work includes the audit report, management letters, and other more specialised reports triggered by suspicions of misconduct, like forensic reports and GST reports.
Related: 5 Smart Strategies to Supercharge Your Business in 2025
Do You Need an Audit?
Singapore:
You are exempt from audit if your company qualifies as a small company under ACRA’s criteria. A small company is defined as a private company that meets any 2 of the 3 conditions in the last 2 financial years:
Total annual revenue ≤ SGD 10 million
Total assets ≤ SGD 10 million
Employees ≤ 50
Even if you qualify, you may still need an audit if you are part of a group. In this case, every company in the group needs to meet the above conditions.
Malaysia:
Most Sdn Bhd companies in Malaysia are legally required to appoint an auditor every year. However, audit exemptions exist if your company is dormant for the immediate past and current financial years or since incorporation, or meets the thresholds outlined below for the immediately past two financial years starting January 2026:
Total annual revenue ≤ RM2,000,000
Total assets ≤ RM2,000,000
Employees ≤ 20
However, these thresholds are set to increase for the financial year starting January 2027 and beyond, becoming:
Total annual revenue ≤ RM3,000,000
Total assets ≤ RM3,000,000
Employees ≤ 30
Read more: Malaysia Audit Exemption 2026: A New Opportunity for Singapore Companies Setting Up Back Offices
General Exceptions
Even with the exemption conditions listed above, audited financial documents may still be needed when required by investors, banks, grant bodies, or business partners.
Do You Need an Audit or Just a Great Accountant?
You probably just need an accountant if your business qualifies as a “small company” or is a Sdn. Bhd. that qualifies for exemption, depending on the country it’s based in. If you need help with things like monthly reporting, tax planning, budgeting, GST/SST compliance, payroll, and claims, then you also probably just need an accountant.
You definitely need an auditor if you are legally required to have one due to the size or structure of your business. You may also need auditors when applying for loans, tenders, or grants, or when preparing for an IPO, M&A transaction, or business sale. Sometimes, shareholders or outside investors may also request audited financials for the added trust and assurance on your business’s performance and credibility from independent sources.
Related: Appointing Company Secretary & Auditor: 5 Astonishing Reasons
Advice from an Accountant’s Perspective
“Audits are expensive and time-consuming, so don’t overpay for the compliance if you don’t need to. If you are exempted, it’s better to invest in better bookkeeping or automation first. Keeping clean books all year will make audits faster, cheaper, and less painful when the time eventually comes. If you plan to raise funds or expand your business, you need to start thinking ahead and start acting like an auditable company, even if you’re not required yet.”
Final Thoughts
Not every business needs an audit, but every business needs a good accountant. They support the business by maintaining accurate financial records, ensuring compliance, and providing the financial clarity required to make informed business decisions. Once you understand the financial situation of your business clearly, then you can decide if you really needed an audit.
It is a decision based on necessity and certainty, you get an audit only when you need to. Whether it's required by law due to your size or structure, or by external parties who want reassurance about your financial capabilities. An auditor provides that independent assurance, in addition to allowing you to be compliant with the regulations.
Not Sure If You Need an Audit?
Download the FREE Business Audit Readiness Checklist and find out what your business really needs — before costly mistakes happen.
