Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

Audit threshold for charities to increase

by
26th Feb 2015
Save content
Have you found this content useful? Use the button above to save it to your profile.

Thousands of small charities in England and Wales will no longer be required to get an annual audit after an income threshold increase.

The government said it will increase the income threshold for charity audits from £500,000 to £1m.

The increase for the audit and "preparation" of group accounts (both to £1m), taken after a  consultation, will make financial regulation of charities more proportionate, saving charities time and money, the government said.

Charities that are exempt from audits will still receive an "appropriate amount of the scrutiny", the Cabinet Office said.

But ICAS said increasing the audit threshold for accounting periods ending on or after March 31 may increase fraud and poor governance in charities.

"Charities are major providers of public services and therefore the increase in the audit threshold seems out of step with the changes," it said.

It also said that the Cabinet Office may have over-estimated potential savings to charities by increasing the audit threshold.

Tags:

Replies (1)

Please login or register to join the discussion.

avatar
By taylorag
27th Feb 2015 12:10

Not good

I know charities who would love this as they could avoid certain transactions being exposed.

Thanks (0)