Employment and Labour Laws And What They Mean for SMEs in Singapore

Audit fees might seem like something only big companies worry about, but understanding what drives these costs can help SMEs in Singapore manage their own compliance and payroll more strategically. In 2025, audit fees continue to rise globally, especially for large, publicly listed firms. So, who’s paying the most, and what can smaller companies learn from it? Let’s break it down.

Big Companies, Bigger Audit Bills

According to the 2025 reporting data:

• S&P 500 companies in the United States now pay an average of US$10.78 million per year in audit fees.
  
• Among them, clients of PwC top the list, paying on average US$12.6 million per audit.
  
• In the UK, audit fees for listed companies have risen by 75% since 2018, driven by increased scrutiny and fewer large audit providers.
  

Why Are Audit Fees So High?

Here’s what drives audit costs to these levels:

• Company size and complexity: The more entities, systems, or global operations a business has, the deeper and broader the audit needs to be.
  
• Regulatory oversight: Jurisdictions like the US (under PCAOB rules) and UK enforce detailed audit requirements, especially for listed firms.
  
• Risk profile: Companies in industries like financial services, manufacturing, and tech often have more complex controls, which increases audit workload.
  
• Increased expectations: Auditors now examine ESG disclosures, cyber risks, internal controls, and fraud risks more closely than ever before.
  

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What This Means for SMEs in Singapore

SMEs might not be writing million-dollar cheques to auditors — but that doesn’t mean audits are simple or risk-free. As expectations rise globally, Singapore is also stepping up enforcement on timely, accurate, and well-documented financial reporting.

Key takeaways for SMEs:

• Don’t wait until year-end to prepare: Audits are smoother and cheaper when your records are clean, reconciled, and accessible throughout the year.
  
• Invest in good systems early: Cloud accounting and real-time reconciliation not only save time — they reduce billable hours during audits.
  
• Stay aware of changing standards: Auditors are paying more attention to areas like revenue recognition, director disclosures, and cash flow controls.
  

Even if you’re exempt from a statutory audit under Singapore’s small company criteria, investors, acquirers, and grant providers may still expect audited financials — especially in tech, finance, and e-commerce sectors.

Summary

Audit fees are rising worldwide — not just because companies are bigger, but because the financial landscape is more complex and closely monitored. For SMEs in Singapore, the lesson is simple: strong internal controls and accurate, well-documented records aren’t just good habits — they’re cost-saving strategies.

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