Directors of a Singapore company must appoint the first auditor within 3 months of incorporation unless the company is exempt from audit, and that auditor holds office until the conclusion of the first AGM. After that, auditors are appointed at each AGM to hold office until the next one. An auditor can be removed only by resolution at a general meeting for which special notice of at least 28 days has been given, and the auditor has a right to make written representations to members.

Changing auditors is a routine commercial decision that companies frequently execute badly, usually by leaving it until the audit season has already started. The rules themselves are not complicated. The timing is what determines whether the switch costs you anything. This article covers both: what the Companies Act requires, and how to sequence a change so it does not put your filing deadlines at risk.

Appointing the first auditor

Where a company is not exempt from audit, its directors must appoint the first auditor within 3 months of incorporation. That auditor holds office until the conclusion of the company’s first annual general meeting.

Two things follow. First, the obligation falls on the directors, not on the members, and it does not wait for a meeting. Second, it applies from incorporation, which catches out founders who assume the requirement only bites when the first financial year ends. A company that will not qualify for small company audit exemption should be identifying its auditor in its first quarter of life.

If the directors do not appoint within the 3 months, members may appoint the auditor at a general meeting. Whether your company needs an auditor at all is a separate question, answered by the small company audit exemption criteria at ACRA Thresholds and the Small Company Exemption.

Annual reappointment at the AGM

At the first AGM, members appoint an auditor, which may be the same firm or a different one, to hold office until the conclusion of the next AGM. That pattern repeats each year. An auditor’s term is therefore one year at a time, running from AGM to AGM.

This matters when you are planning a change, because it means you usually do not need to remove anyone. If you simply want a different firm next year, the clean route is to appoint the new firm at the AGM when the incumbent’s term ends. Removal procedures exist for the situation where you need the auditor out before their term expires, which is a different and more formal thing.

Removing an auditor before the end of their term

An auditor may be removed by resolution of the company at a general meeting for which special notice has been given. The procedural requirements are strict and exist to protect the auditor’s independence, so that an auditor who raises uncomfortable findings cannot simply be dismissed quietly.

• Special notice of the intention to move the resolution must be given to the company at least 28 days before the general meeting
• The company must notify the auditor concerned
• The auditor has the right to make written representations to members and to be heard at the meeting
• The removal takes effect by resolution passed at that general meeting

The 28-day clock is the part that derails plans. A company that decides in month six of a seven-month filing window to remove its auditor has, in practice, no route to a compliant filing on time. Removal is a decision to take early in the year or not at all.

Resignation by the auditor

An auditor may also resign. For a company that is not a public interest company, an auditor may resign by giving written notice to the company, and the resignation takes effect on the date specified in the notice, subject to the statutory conditions being met.

Public interest companies are treated more restrictively, with additional requirements including ACRA’s involvement where an auditor seeks to resign before the end of the term. The policy is the same as for removal: the regulator wants visibility when an auditor leaves a public interest engagement early, because the reason may matter to the public.

If your auditor resigns unexpectedly, treat it as a timetable emergency rather than an administrative one. The replacement firm needs time to accept the engagement, perform its own acceptance procedures, and get comfortable with opening balances.

When in the year to change firms

The single most useful rule: change auditors before your financial year end, not during the audit.

Timing of the switch	What it means in practice
Before financial year end	Cleanest. The new firm can plan the audit properly, attend a stock count if one is needed, and observe controls during the period it will report on.
Shortly after year end, before fieldwork	Workable. The new firm performs additional procedures on opening balances but the timetable usually holds.
Mid-audit	Disruptive. Work already performed is generally not transferable, the new firm effectively restarts, and the filing deadline is at risk.
After the audit report is signed, for the following year	Straightforward. Appoint the new firm at the AGM for the next financial year.

The commonly cited practical marker is a stock count. If inventory is material to your financial statements, the auditor normally needs to attend a count at year end. A firm appointed in month four cannot go back and attend a count that happened in month one, and will have to perform alternative procedures instead, which take longer and are less satisfactory for everyone.

What the incoming auditor needs from you

• Prior-year signed financial statements, with the previous auditor’s report
• Access to the previous auditor’s working papers, which requires your consent and the outgoing firm’s cooperation
• The prior-year trial balance and the audit adjustments made to it
• Any management letter or findings issued by the previous auditor
• Details of the previous auditor’s opinion, including any modification, and the reason for it
• Your reason for changing firms, which the incoming auditor is expected to ask about as part of its acceptance procedures

That last item is not a formality. Before accepting the engagement, the incoming firm will normally seek professional clearance from the outgoing firm, asking whether there is any reason it should not accept. Companies sometimes read this as the two firms conferring behind their back. It is a required independence and ethics step, and a firm that skips it is telling you something about how it works.

Opening balances are the other substantive issue. A new auditor has not audited last year’s closing figures, so it has to obtain its own comfort over the opening position. That work is real and it is why the first year with a new firm involves more questions about the prior year than the following ones will.

Contractual traps to check before you switch

• Banking facilities and loan agreements, which sometimes name an acceptable auditor or a category of firm
• Shareholder agreements, particularly where an investor has the right to approve the auditor
• Grant conditions, where the awarding body may require an audit by a firm meeting stated criteria
• Group instructions, where a foreign parent’s auditor requires reporting from a firm within a particular network
• Lease and concession clauses requiring a certificate from a public accountant, which are unaffected by the statutory appointment but still need someone to sign them, as covered at /blog/gto-audit-singapore/

Checking these takes an afternoon. Discovering one of them after the AGM has appointed a new firm takes considerably longer to unwind.

The switching checklist

• Decide before year end, not during the audit
• Check financing, shareholder and grant agreements for any named-auditor requirement
• Shortlist and select the incoming firm, and agree scope and timetable in writing
• Allow the incoming firm to complete professional clearance with the outgoing firm
• If the incumbent’s term is ending, appoint the new firm at the AGM; if it is not, follow the removal procedure with 28 days’ special notice
• Consent to the release of the previous auditor’s working papers
• Lodge the change of auditor with ACRA
• Hand over prior-year statements, trial balance, adjustments and management letters

How to choose the incoming firm is its own decision, with its own criteria and red flags; that is covered at

Best Audit Firm Singapore: How to Screen, Score and Choose in 2026

and, for the mid-tier comparison specifically, at Mid Tier Audit Firm in Singapore vs Big 4: Cost, Quality, and the SME Reality

Frequently asked questions

When must a Singapore company appoint its first auditor?

Within 3 months of incorporation, unless the company is exempt from audit. The directors make the appointment, and the auditor holds office until the conclusion of the first AGM.

How long does an auditor hold office?

From one AGM to the conclusion of the next. Members appoint the auditor at each AGM, so an auditor’s term is effectively one year at a time.

How do you remove an auditor in Singapore?

By resolution at a general meeting for which special notice has been given at least 28 days beforehand. The company must notify the auditor, who has the right to make written representations to members and to be heard at the meeting.

Can an auditor resign?

Yes. For a company that is not a public interest company, an auditor may resign by written notice to the company, taking effect on the date specified, subject to the statutory conditions. Public interest companies are subject to additional requirements, including ACRA’s involvement in certain cases.

What is the best time of year to change audit firms?

Before your financial year end. The incoming firm can then plan the audit and attend a year-end stock count if inventory is material. Changing mid-audit generally means restarting and puts filing deadlines at risk.

Do I have to give a reason for changing auditors?

There is no statutory requirement to justify it to the outgoing firm, but the incoming firm will ask as part of its acceptance procedures, and will normally seek professional clearance from the outgoing auditor before accepting.

Will the new auditor need the old auditor’s working papers?

Usually yes, to get comfort over opening balances. Access requires your consent and the outgoing firm’s cooperation, so arrange it as part of the handover rather than afterwards.

Does changing auditors have to be filed with ACRA?

Yes. A change of auditor is lodged with ACRA as part of the company’s officer and auditor records.

Thinking about a change for the coming financial year?

The best time to have that conversation is before your year end. AG Singapore takes on incoming engagements with a defined handover process and a published 30-day completion target for qualifying audits. See AG’s audit services.