Complete guide to charity audit requirements in the UK. Learn when an audit is required, the audit process, auditor qualifications, and what to expect from a charity audit.
A statutory audit is required for certain charities and provides the highest level of assurance on charity financial statements. Audits involve detailed testing and verification of financial records, providing trustees and stakeholders with confidence in the accuracy of accounts.
Charities must have a statutory audit if they exceed £1 million annual income, are charitable companies registered with Companies House, or have other specific legal requirements. Some charities may also choose to volunteer for audit even when not mandatory.
Audit must be carried out by a registered auditor who is independent of the charity and registered with a recognised supervisory body. The audit provides an independent opinion on whether accounts give a true and fair view.
Statutory audit is required for charities with income over £1 million, charitable companies, and charities that are otherwise required by their governing document or external funders to have an audit.
Auditors must be registered with a recognised supervisory body (such as ACCA, ICAEW, or CIMA) and be independent of the charity. They must comply with International Standards on Auditing.
The audit involves planning, risk assessment, testing of controls, substantive testing, verification of assets and liabilities, and final review. Auditors provide an opinion on the accounts.
The auditor's report provides an independent opinion on whether accounts show a true and fair view. It may be qualified or unqualified depending on any issues found during the audit.
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