Charity audit

An audit is the most thorough level of external scrutiny a charity’s accounts can have. A registered auditor examines the figures and the systems behind them, then gives a formal opinion on whether the accounts are true and fair. It is more work — and more cost — than an independent examination, so the law reserves it for larger charities.

In England and Wales a statutory audit is required only where gross income exceeds £1 million, or gross assets exceed £3.26 million and income exceeds £250,000. (Source: GOV.UK, Independent examination of charity accounts (CC31); Charities Act 2011, accessed 9 July 2026.) Smaller charities can usually choose an independent examination, unless their governing document or a funder requires an audit.

From an intended 1 October 2026 these thresholds are due to rise to £1.5 million income and £5 million assets. Check which applies to your year with the audit-threshold checker and the UK Charity Compliance Handbook.