Statutory audit

Charities move between three scrutiny regimes as they grow: none, independent examination, and audit.

Audit is required above the gross income threshold, and separately where assets exceed the asset threshold and income exceeds a lower figure. The asset test carries an income condition that moves with the accounts threshold — a point the regulator’s own summary omits.

An audit gives positive assurance — the auditor states the accounts do give a true and fair view. An independent examination gives negative assurance — the examiner states that nothing came to their attention suggesting otherwise. Where the thresholds require audit, examination is not an alternative.

Charitable companies face the Companies Act audit regime as well, and must satisfy the stricter of the two. See what scrutiny you need.