Financial reporting is not paperwork.It is a director’s duty.
Why unaudited financial statements matter, what directors are expected to review, and how strong finance processes protect the company’s reporting quality.
Your legal duties.Companies Act 1967 · Section 201
Directors must present financial statements that comply with prescribed accounting standards. Audit-exempt companies may present unaudited statements; companies that are not exempt must present audited statements.
Directors must ensure the statements fairly represent the company’s financial performance and position.
How to meet your reporting duties.
Use the seven practical areas below as a board-level checklist. Open each section to review the key actions and considerations.
01Identify all key reporting deadlines
- Understand the company’s financial reporting period.
- Identify the applicable ACRA and IRAS reporting deadlines.
- Seek professional guidance when due dates or exemptions are unclear.
02Review statements before authorising issuance
Understand and critically assess the financial statements before approval.
- Check whether accounting treatments reflect the commercial substance of transactions.
- Apply professional judgement and scepticism to assumptions, estimates and conclusions.
- Ensure the statements are accurate, complete, transparent and fairly presented.
03Stay informed and financially aware
Understanding accounting and financial-reporting fundamentals supports better business decisions and more meaningful reviews.
- Invest in ongoing education and director training.
- Obtain professional accounting or advisory support when additional expertise is required.
04Establish a robust finance team
Build a team of qualified, competent professionals and support them with appropriate systems, resources and tools.
- Maintain continuous technical training and professional development.
- Ensure sufficient capacity for timely, high-quality financial reporting.
05Seek professional support when needed
External professionals can strengthen reporting processes through accounting, financial advisory, outsourced bookkeeping and specialist support for complex tax or compliance matters.
- Confirm qualifications, experience and technical expertise.
- Ensure advice is objective and free from conflicts.
- Maintain appropriate oversight over outsourced work.
06Work collaboratively with auditors
A constructive relationship with auditors can improve the audit process and reporting quality.
- Address findings promptly and professionally.
- Seek specialist advice for complex matters.
- Exercise independent judgement rather than relying solely on an auditor’s view.
- Ensure identified issues are properly resolved and reflected.
07Maintain strong controls and accurate records
Reliable reporting depends on robust internal controls and complete, current accounting records.
- Establish and apply appropriate accounting policies.
- Maintain effective controls, procedures and supporting documentation.
- Record, monitor and review transactions properly.
- Safeguard assets and reduce the risk of error, fraud and non-compliance.
The responsibility stays with directors.
Technology, finance teams, service providers and auditors can all strengthen the process. They do not replace informed director oversight.
Understand
Know what the financial statements say about performance, position and risk.
Challenge
Question unusual treatments, estimates, missing evidence and unsupported assumptions.
Approve Responsibly
Authorise issuance only when satisfied that the statements are complete and fairly presented.
Need professional reporting support?
CorePro can assist with accounting, financial statements, taxation, payroll and corporate compliance while helping directors maintain effective oversight.