Auditing and Corporate Reporting REGULATORY STRATEGY

Why does the Regulator consult the Regulated?  ACRA’s Mission: To provide a responsive and trusted regulatory environment for businesses and public accountants.  Our Thrust: A collaborative approach to regulation would better achieve our mission. Engaging with our stakeholders in the corporate reporting landscape: a wider community (directors, audit committees, professional bodies, preparers and users of financial information in addition to auditors)

The Regulator’s Vision  To develop in Singapore the most trusted and enabling environment for businesses.  The Regulator’s value proposition: 1.To develop Singapore into a trusted business hub; 2.The audit profession plays an instrumental role in the corporate financial reporting environment ; 3.A winning proposition for the profession is to provide services which meets the needs of the Singapore economy and benchmarked to sound international standards.

We recognise that our Regulatory Framework must achieve 3 Strategic Outcomes High Quality Audit and Corporate Financial Reporting We will promote high quality audit and corporate financial reporting to build confidence in Singapore’s financial corporate reports. Trusted Regulatory Framework We will strengthen the integrity of our business and public accounting regulatory framework through constant review and refinement of our legislative and policy framework. High Degree of Voluntary Compliance We will strengthen our policies to promote voluntary compliance but will not hesitate to take swift and just enforcement action to preserve confidence in Singapore’s business environment.

Being a Transparent Regulator…. Public Consultation #1:

Scope of Consultation  The auditing market and regulatory environment in which ACRA works;  ACRA’s regulatory objectives, strategic outcomes, and the key pillars that support the achievement of the strategic outcomes;  ACRA’s Practice Monitoring Programme (PMP);  ACRA’s Financial Reporting Surveillance Programme;  ACRA’s approach to policy formulation and consultation; and  Key areas directed towards promotion of confidence in auditing and corporate reporting.

The Singapore Landscape Top-tier – Big-4 (with global network). Mid-tier – “Local firms” with increasing alliances with international mid-tier audit firms. Smaller-practice– Form the bulk of the profession in numbers; operating in the smallest segment in the audit market.

International Landscape Accelerated Convergence: Auditing & Accounting Standards: Global Interest on Audit Quality IFIAR (1) Globalisation of companies and business activities (“cross border”) (3) Call for Greater Collaboration among Regulators in leading jurisdictions (2) Reliance on locally audited financial information utilised internationally International Accounting Standards Board

A Quick Sweep of the Consultation Points

A Quick Sweep of the Consultation Points (Cont’)

In order to achieve our strategic outcomes, we need to have in place (1) Internationall y Reputable Policy & Legislative Framework (Thought Leadership) (2) High Quality of Audit (Competence & Professionalism) (3) Effective & Efficient Regulation (Enlightened Regulatory Approach) (4) Transparent & Informed Market (Efficient Market) (5) Strong Professional Environment (Role of Professional Bodies) (6) Competitive Audit Market (Growth & Development of Profession) 6 Pillars:

A Quick Sweep of the Consultation Points (Cont’)

Policy Development: Making a Case for Change Consultation Making the Case for change Planning implementation Mitigating Remaining problems Implementation Evaluation of results benchmarks International Development & Evaluation Of Options

Key regulatory principles ProportionalityAccountability ConsistencyClarity and transparency Targeting Ownership

A Quick Sweep of the Consultation Points (Cont’)

A common goal… Together, we can: Instil investors’ confidence; Protect Stakeholders’ Interest; Promote a Trusted Brand for Singapore Auditing Services.

For Public Consultation ACRA’s Regulatory Strategy Vis-à-vis Auditing & Corporate Reporting Consultation Period 24 July 2007 to 24 September

Thank You