Any charity which has income above the audit threshold in the financial year, or which has a clause in its governing document requiring an audit must have an audit of its financial statements.

The thresholds which require an audit by statute are set out in our guidance.

Further guidance which answers the questions most frequently raised with us about audit exemption, cross border charities and group accounts can be found in our Q & A Pack Audit and independent examination of company charities.

Where an audit of a charity’s accounts is required, this will have to be carried out by a qualified registered auditor. All registered auditors are listed by name on the register of statutory auditors. Special audit provisions apply to permit audits by the NAO, Wales Audit Office and the Audit Commission in certain circumstances.

The work which the auditor must carry out in the course of the audit is laid down by the Auditing Practices board (APB). It must conform to Auditing Standards (ISAs (UK and Ireland))

The auditing standards have been written mainly from the perspective of commercial organisations and the APB therefore publishes tailored guidance for the auditors of charities in Practice note 11, the Audit of Charities in the United Kingdom.

Guidance for auditors, independent examiners and trustees on reporting matters of material significance to the Charity Commission

As the regulator of charities the Charity Commission values the role of auditors and independent examiners in assisting their charity clients to meet their statutory obligations and follow the law wherever it impacts on their operations. Since 1 April 2008 all auditors and independent examiners in England and Wales are required by the Charities Act 1993 to report matters of material significance to the Charity Commission.

Guidance for auditors on what to report and how to report it, is given in our guidance The duty of Auditors to report matters of Material Significance to the Charity Commission and OSCR.

Similar guidance for Independent examiners is given in CC32 – Independent Examination of Charity Accounts: Examiners' Guide