There are important changes to audit thresholds for charity accounts with year ending on or after 31 March 2015 (England and Wales only).
The effects of this will:
- increase the income threshold for audit of charities from £500,000 to £1m
- increase the aggregate group income threshold at which parent charities should have group accounts audited from £500,000 to £1m
- increase the preparation threshold for group accounts from £500,000 to £1m
- include the Institute of Financial Accountants (IFA) and the Chartered Public Accountants Association (CPAA) to the list of recognised bodies for independent examination of charities exceeding the £250,000 income threshold
Important note: For charities with assets of more than £3.26m and an annual income exceeding £250,000 – the threshold remains at £250,000.
Charities whose accounting years ended on or after 31 March 2015, and whose governing documents permit an independent examination, will be able to apply the new thresholds in deciding whether to adopt audit or independent examination.