Can auditor report sign by one director ?

Discuss your views about Singapore business & economy, current policies & issues, starting a business in Singapore.
Post Reply
biztreesg
Newbie
Newbie
Posts: 9
Joined: Wed, 09 Nov 2011 11:57 am
Location: SINGAPORE
Contact:

Can auditor report sign by one director ?

Post by biztreesg » Thu, 10 Nov 2011 5:39 pm

Anyone knew that can the auditor report sign by only ONE director everthought the company have 3 directors and the quaraum for director trsanction is 2 was stated on the company' s MA?

User avatar
Strong Eagle
Moderator
Moderator
Posts: 11504
Joined: Sat, 10 Jul 2004 12:13 am
Location: Off The Red Dot
Contact:

Post by Strong Eagle » Thu, 10 Nov 2011 7:05 pm

If you have stated that two directors must act together, then no, both must sign.

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 40016
Joined: Thu, 11 Nov 2004 1:26 pm
Answers: 11
Location: Retired on the Little Red Dot

Post by sundaymorningstaple » Thu, 10 Nov 2011 7:42 pm

Yeah, sometimes it can be a beach! on of our companies has for directors and all for must sign. The problem is one is in Uni in the UK one is back and forth and 2 are here.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

User avatar
JR8
Immortal
Immortal
Posts: 16522
Joined: Wed, 24 Mar 2010 12:43 pm
Location: K. Puki Manis

Post by JR8 » Thu, 10 Nov 2011 8:02 pm

Boilerplate Memorandum and Articles of Association in the UK usually allow that a director who lives outside of the UK is not required to be notified of a meeting/vote. In the same vein, a quorum can be formed without consulting them.

In central London property freehold companies this can be an issue, as with many overseas owners, you can end up with one director assuming control.



p.s. edit to add. This of course is UK law. But it would not surprise me hugely to see something similar carried over into SGn law.

biztreesg
Newbie
Newbie
Posts: 9
Joined: Wed, 09 Nov 2011 11:57 am
Location: SINGAPORE
Contact:

Can auditor report sign by one director ?

Post by biztreesg » Fri, 11 Nov 2011 10:00 am

Thanks all for your replies .

What if resolution had been passed to approve auditor report to be sign by 1 director , is this acceptable ? And i believe with the passed resolution we can overwrite what stated in MA ( Quraum is 2 director)

Beside that ACRA also give the public option to apply for sign by 1 director..

Anyone knew what is the request from auditing ? Any FRS requirement ?

User avatar
carteki
Editor
Editor
Posts: 1237
Joined: Mon, 28 Apr 2008 11:03 pm
Location: Singapore
Contact:

Re: Can auditor report sign by one director ?

Post by carteki » Fri, 11 Nov 2011 10:12 am

biztreesg wrote:Anyone knew what is the request from auditing ? Any FRS requirement ?
Did you ask your auditors? From a pure audit standpoint the financial statements don't have to be signed by anyone - especially as the production of financial statements is NOT part of the audit process. It is the company memoranda and local law that governs this.

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 40016
Joined: Thu, 11 Nov 2004 1:26 pm
Answers: 11
Location: Retired on the Little Red Dot

Post by sundaymorningstaple » Fri, 11 Nov 2011 12:48 pm

OP, do you pay the directors director's fees? If yes, just tell 'em to sign it. I don't see what the problem is, unless you are trying to pull a fast one over the directors..... :???:
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

User avatar
Strong Eagle
Moderator
Moderator
Posts: 11504
Joined: Sat, 10 Jul 2004 12:13 am
Location: Off The Red Dot
Contact:

Re: Can auditor report sign by one director ?

Post by Strong Eagle » Fri, 11 Nov 2011 10:28 pm

carteki wrote:
biztreesg wrote:Anyone knew what is the request from auditing ? Any FRS requirement ?
Did you ask your auditors? From a pure audit standpoint the financial statements don't have to be signed by anyone - especially as the production of financial statements is NOT part of the audit process. It is the company memoranda and local law that governs this.
I disagree. Directors must sign audited financial statements, stating that there are no material misstatements of fact. I've always had to sign my audited statements.

User avatar
JR8
Immortal
Immortal
Posts: 16522
Joined: Wed, 24 Mar 2010 12:43 pm
Location: K. Puki Manis

Re: Can auditor report sign by one director ?

Post by JR8 » Fri, 11 Nov 2011 10:43 pm

Strong Eagle wrote:
carteki wrote:
biztreesg wrote:Anyone knew what is the request from auditing ? Any FRS requirement ?
Did you ask your auditors? From a pure audit standpoint the financial statements don't have to be signed by anyone - especially as the production of financial statements is NOT part of the audit process. It is the company memoranda and local law that governs this.
I disagree. Directors must sign audited financial statements, stating that there are no material misstatements of fact. I've always had to sign my audited statements.

I'm not an expert in this sphere, but surely it is the auditors who are stating that the directors have not materially misstated the facts rather than vice versa?

Aren't the auditors a higher level and independent authority free of being 'signed off on' (i.e. their whole point in the first place)?

Dunno!

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 40016
Joined: Thu, 11 Nov 2004 1:26 pm
Answers: 11
Location: Retired on the Little Red Dot

Post by sundaymorningstaple » Fri, 11 Nov 2011 10:54 pm

Don't know about UK laws, but in Singapore, the Directors HAVE to sign the Reports to verify all statements both verbal and documentary handed to the auditors are of a factual nature and that they agree with the findings and to also give permission for the auditors to make any necessary YE adjustments as required.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

User avatar
carteki
Editor
Editor
Posts: 1237
Joined: Mon, 28 Apr 2008 11:03 pm
Location: Singapore
Contact:

Re: Can auditor report sign by one director ?

Post by carteki » Sat, 12 Nov 2011 1:43 pm

Strong Eagle wrote:I disagree. Directors must sign audited financial statements, stating that there are no material misstatements of fact. I've always had to sign my audited statements.
SE - I was being very technical. The preparation of the numbers in the format of a balance sheet and income statement is NOT part of the audit process. It is possible to have an audit without producing financial statements (and that doesn't negate the value of the audit). I'm not sure as to the SG requirements, but during the audit management sign a "management representation letter" that states that they have disclosed all relevant and material information to the auditors. This will be signed regardless of whether or not financial statements are produced.
JR8 wrote:I'm not an expert in this sphere, but surely it is the auditors who are stating that the directors have not materially misstated the facts rather than vice versa?

Aren't the auditors a higher level and independent authority free of being 'signed off on' (i.e. their whole point in the first place)?
It is an inherent limitation in the audit process that if management want to "hide" something then it can be very difficult for the auditors to find it - and it is perfectly possible to do so. Think about cash sales. If the guy receives payment in cash and puts it in his pocket with no receipt, there is no reason why the auditors should think that the sales figures are understated (and therefore the co is paying lower tax). There is a great deal of reliance in the audit process on the management representation that they have disclosed everything.

In suiing an audit firm for negligence you have to prove 2 things - 1) that the auditor ought reasonably to have known about what was going on; and 2) that the judgement call that they made was wrong. Both of which are really difficult to prove, remembering that you cannot use the benefit of hindsight.

(The 3rd is that you need to prove that you made your decision based on the audited information - but this is not relevant to the discussion)

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “Business in Singapore”

Who is online

Users browsing this forum: No registered users and 6 guests