Charity Audits
Are you a registered charity in need of an audit?
Most charities (registered or unregistered) are required to prepare annual accounts, produce a trustee’s annual report and prepare a charity annual return.
If you are a registered charity, you may also be required to have an annual statutory audit carried out by a registered auditor like ourselves.
Does my registered charity need to appoint an auditor?
In most cases charities are governed by the Charities Act and (if incorporated) the Companies Act. However, the threshold for charities to be required to have a statutory audit is considerably lower than those of public and private companies.
Charity audit requirements
You are required under the Companies Act to appoint a statutory auditor to perform an external audit on your annual accounts if your charity meets either of the following requirements;
- Charities with an income of £1million or more per annum.
- Charities with total assets exceeding £3.26million, and a gross income exceeding £250,000 per annum.
Your charity may also have to be audited if it is a requirement of the charity’s governing document, or due to a condition imposed by a funder.
Charities with a gross income in excess of £25,000 per annum are required to have an independent examination of their financial statements.
If you think that your charity may be required to appoint an auditor please contact our expert team.
Charity audit exemptions
Any charity with a gross income of less than £1million per annum can choose to opt out of a full audit unless their gross assets exceed £3.6millon and their gross income exceeds £250,000 per annum.
However, it is likely that you will be required to have an independent examination instead.
Even if your charity is exempt from a statutory audit, there are many reasons why you might opt to have one. It’s important that charities remain transparent and an independent audit will reassure benefactors that their money is being used appropriately.
Find out how we could help with your charity audit
If you think that your charity may be required to appoint an auditor please contact us – we would be happy to help. You can call our team on 01934 412097, email , or complete the form on our contact page and we’ll be in touch shortly.
Find out more about our specialist accountancy services for charities.
Other accountancy services
We offer a comprehensive range of accountancy services for businesses and individual clients. Click the links below to find out more.
GET IN TOUCH