The Corporate and Accounting Laws (Amendment) Act 2025 introduces targeted amendments to the Accountants Act 2004, with staggered implementation commencing May 2026.
From a professional accountant’s perspective, the following material changes and practical considerations arise:
Tranche 1 – Effective 6 May 2026
1. Expanded Anti-Money Laundering / Countering the Financing of Terrorism Obligations
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Amendment: Proliferation financing is explicitly included within the scope of AML/CFT requirements, aligning with Financial Action Task Force standards.
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Practical Impact: Public accountants must update firm-wide AML/CFT risk assessments, policies, and procedures to address proliferation financing risks. Client due diligence and transaction monitoring frameworks will require revision.
2. Information Sharing with Foreign Audit Regulators
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Amendment: ACRA is empowered to share information obtained through its audit oversight functions with overseas audit regulatory bodies.
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Practical Impact: Audit firms should be aware that working papers and oversight findings may be subject to cross-border regulatory disclosure. Confidentiality arrangements with clients should address this regulatory exception.
3. Identification of Primarily Responsible Public Accountant in Audit Opinion
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Amendment: The audit opinion must name the public accountant primarily responsible for the engagement.
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Practical Impact: Audit reports issued from 6 May 2026 must include the individual PA’s name (not merely the firm). Firms should revise audit report templates and ensure engagement quality control procedures clearly designate the primarily responsible PA before opinion issuance.
Tranche 2 – Effective Second Half of 2026
4. Streamlined Registration and Cancellation Processes
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Amendment: Registration, renewal, removal, and cancellation processes for public accountants are simplified.
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Practical Impact: Administrative burden for individual PAs may reduce, but firms should monitor any changes to notification timelines or grounds for removal that could affect practice continuity.
5. Extended Renewal Periods for Public Accountants
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Amendment: Renewal may be granted for periods longer than one year, to be specified in subsidiary legislation.
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Practical Impact: PAs should evaluate cash flow and compliance planning under multi-year renewal cycles. Firms must track staggered renewal dates if different PAs opt for varying periods.
6. Mandatory Professional Indemnity Insurance for Accounting Firms
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Amendment: Professional indemnity insurance requirements, previously applicable only to Accounting Corporations and Accounting Limited Liability Partnerships, are extended to all accounting firms (including traditional partnerships and sole proprietorships).
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Practical Impact: Uninsured firms must secure PII coverage before 2H 2026. Firms should reassess policy limits, retroactive cover, and exclusions. Premium costs will affect partner profit shares and fee structures.
Excepted Action Items for Auditors
| Area | Action Required | Deadline |
|---|---|---|
| AML/CFT | Update policies to include proliferation financing | By 6 May 2026 |
| Audit reports | Modify opinion wording to name primarily responsible PA | For reports dated on/after 6 May 2026 |
| PII | Obtain or verify PII coverage for all accounting firm structures | By 2H 2026 |
| Cross-border engagements | Review data sharing and client consent protocols | Immediate |
Auditors should monitor upcoming subsidiary legislation for precise renewal period options and PII minimum requirements. Further technical guidance is expected from ACRA ahead of each tranche.
Source: ACRA, 8 April 2026