In Singapore’s fast-paced construction sector, maintaining financial transparency and regulatory compliance isn’t just good practice—it’s essential. A construction company audit ensures that builders, contractors, and developers are operating within legal frameworks while optimizing their financial health. Preparing for this annual audit requires a proactive approach to documentation, reporting, and internal controls.

Key Items to Include in Your Annual Audit Checklist

1. Project Cost Records

• Maintain detailed breakdowns of material, labor, equipment, and subcontractor costs.

• Ensure all expenses are categorized correctly for accurate reporting.

2. Revenue Recognition Statements

• Document how and when revenue is recognized across different projects.

• Align with Singapore Financial Reporting Standards (SFRS) for construction contracts.

3. Subcontractor Agreements & Payment Logs

• Keep signed contracts, payment schedules, and proof of disbursements.

• Include variation orders and dispute resolutions, if any.

4. Payroll and CPF Contributions

• Verify employee records, salary payments, and CPF submissions.

• Ensure compliance with MOM regulations and employment laws.

5. Tax Filings and GST Reports

• Prepare corporate tax returns, GST filings, and relevant correspondence with IRAS.

• Include documentation for any tax exemptions or rebates claimed.

6. Fixed Asset Register

• Maintain updated records of machinery, vehicles, and equipment.

• Include depreciation schedules and asset disposal records.

7. Bank Statements and Loan Agreements

• Reconcile monthly bank statements with accounting records.

• Provide documentation for business loans, credit facilities, and interest payments.

8. Licenses and Regulatory Certificates

• Ensure all BCA licenses, safety certifications, and environmental permits are current.

• Include renewal dates and compliance reports.

9. Internal Control Policies

• Document procedures for procurement, approvals, and financial oversight.

• Highlight any changes made during the year to improve governance.

10. Previous Audit Reports and Management Responses

• Review past audit findings and corrective actions taken.

• Prepare explanations for any recurring issues or unresolved discrepancies.

Final Thoughts

An annual audit isn’t just a compliance exercise—it’s a strategic opportunity to strengthen your construction company’s financial foundation. By preparing these documents in advance, Singapore builders can streamline the audit process, reduce risk, and build trust with stakeholders.