Freebies
1st Friday
Tax Chat
News
App

Statutory Audit

Statutory Audit

The Charities Act 2006 simplifies the rules about when a professional audit is required.
Non-company charities require an audit if:

  • Gross annual income exceeds £500k; or
  • Aggregate value of assets exceeds £3.26 million and gross annual income exceeds £250k.

Incorporated charities:

  • Do not require an audit under Companies Act if it meets the small company thresholds and an audit is not required in the charity’s constitution.
  • Audit is required under the Charities Act where:
    • Gross annual income exceeds £500k; or
    • Aggregate value of assets exceeds £3.26 million and gross annual income exceeds £250k.

It is the choice of the trustees as to whether an audit is carried out under Charities Act or Companies Act. Guidance can be found here.

An independent examination is required for charities with income above £25,000, but below the audit thresholds stated above.