MAS: Annual report 2006 / 2007
 
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MAS FY 2006/2007
FINANCIAL STATEMENTS
Highlights 66
Statement by Directors 67
Auditor's Report 68
Income Statement 69
Balance Sheet 70
Statement of Changes in Equity 71
Cash Flow Statement 72
Statement of Backing of Currency in Circulation 73
Notes to the Financial Statements 74
 
  REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OF THE MONETARY AUTHORITY OF SINGAPORE
FOR THE YEAR ENDED 31 MARCH 2007
  The accompanying financial statements of the Monetary Authority of Singapore (MAS) and Currency Fund, set out on pages 69 to 93, have been audited under my directions and in accordance with the MAS Act (Chapter 186, 1999 Revised Edition). These financial statements comprise the balance sheet as at 31 March 2007, and the income statement, statement of changes in equity, cash flow statement and statement of backing of currency in circulation for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Board of Directors’ responsibility for the financial statements

The Authority’s Board of Directors is responsible for the preparation and fair presentation of these financial statements in accordance with the MAS Act, Currency Act (Chapter 69, 2002 Revised Edition) and Singapore Financial Reporting Standards. This responsibility includes oversight of the designing, implementing and maintaining of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

My responsibility is to express an opinion on these financial statements based on the audit. The audit was conducted in accordance with the MAS Act, Currency Act and Singapore Standards on Auditing. Those standards require that ethical requirements be complied with, and that the audit be planned a nd performed to obtain reasonable assurance as to whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. An audit also includes evaluating, within the context of applicable laws, the appropriateness of accounting policies used and the reasonableness of accounting estimates made by directors, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

As disclosed in Note 3.1(a) to the financial statements, the Authority, in preparing its financial statements, is allowed under section 34(3) of the MAS Act and section 21(10) of the Currency Act to comply with accounting standards to the extent that it is, in the opinion of the Authority, appropriate to do so, having regard to its objects and functions. As also disclosed in Note 3.1(a), the Authority has considered its responsibilities for managing the Singapore dollar exchange rate and the Official Foreign Reserves and is of the view that, for effective management of Singapore’s monetary policy, it would be appropriate not to meet, in some respects, the Singapore Financial Reporting Standards. The financial statements accordingly disclose less information than would be required under those Standards.

Having regard to the power given to the Authority under section 34(3) of the MAS Act and section 21(10) of the Currency Act, in my opinion, the financial statements present fairly, based on the framework of accounting standards adopted by the Authority, the state of affairs of the Authority as at 31 March 2007 and the financial transactions of the Authority for the year ended on that date.

LIM SOO PING
AUDITOR-GENERAL
SINGAPORE

28 June 2007