Charities: Changes to audit exemption thresholds.
Changes to charity audit thresholds came into force on 31 March 2015, aimed at reducing the regulatory burden for charities. They include increasing the basic audit threshold from £500,000 to £1 million, meaning less charities will be required to subject their accounts to a statutory audit. Those charities can instead have their accounts looked at by an independent examiner, ensuring that the level of assurance remains high.
Other changes include increasing the aggregate group income threshold at which parent charities must prepare group accounts from £500,000 to £1 million.
The Charity Commission has published guidance to reflect these changes, and charities are encouraged to look at the changes and see if they can benefit from them, particularly those whose financial year has recently ended.
We can help guide charity Trustees through the required decision process.