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Audit

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An Audit is a form of independent examination of an organisation/group’s accounts carried out by a suitably qualified auditor.

Is my group required to have our Accounts audited?

If your group is Incorporated 

An audit of your accounts is usually required if your group is incorporated (for example a Company Ltd by Guarantee or Community Interest Company). However, most incorporated community groups/organisations are relatively small and therefore likely to be exempt from a requirement to have their Annual Accounts audited.

To qualify for audit exemption, your group must:-

  • qualify as small
  • have a turnover of less than £6.5 million
  • have a balance sheet total of less than £3.26 million

Your group or organisation will be classed as ‘small’ (in Company Law) if it meets at least two of the following conditions:-

  • annual turnover less than £6.5 million
  • the balance sheet less than £3.26 million
  • no more than 50 employees

Even if your group is exempt from audit requirements under Company Law you would still be required to have your Annual Accounts audited if there is a requirement in your constitution to do so, or if the Directors make a decision to do so.

If your group is a registered charity in Scotland

If your group is a registered charity in Scotland and you prepare Receipts and Payments Accounts, you would be required to have these audited if:-

  • your constitution specifies a requirement for the accounts to be audited
  • your charity’s gross income exceeds £500,000
  • your charity has gross assets of more than £3.26 million
  • the Trustees have decided to get the accounts Audited 
  • any enactment of Parliament requires an audit

If your group is a registered charity in Scotland and you prepare fully Accrued Accounts, you would be required to have these audited if:-

  • your constitution specifies a requirement for the accounts to be audited 
  • your charity has gross assets of more than £3.26 million

Who can carry out an audit?

If your group is required to have your accounts audited, this level of external scrutiny will need to be carried out by:-

  • a registered auditor
  • the Auditor General for Scotland
  • an auditor appointed by the Accounts Commission for Scotland

Contact the Community Toolkit Editor

Conditions of Use
Last Updated 14/10/2011 15:19

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Contact the Community Toolkit Editor

Conditions of Use
Last Updated 14/10/2011 15:19

_uacct = “UA-829849-2″;urchinTracker();

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