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CHARITIES |
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AUDIT THRESHOLDS FOR CHARITIES |
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¶9744 |
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The audit procedures for registered charities in the UK are currently covered by the auditing standards and Practice Note 11 “The Audit of Charities in the UK”. The Practice Note is currently being revised to reflect developments in auditing standards both in the UK and internationally and for changes in company legislation, incorporated in the Companies Act 2006. At present, the mixture of new company and charity legislation throughout the different territories of the United Kingdom is complicated. Under Scottish legislation all large Scottish charities must be audited, irrespective of whether they are companies or not. For dual registered charities the situation is even more complex. For instance a charity registered in England and Wales with significant activities in Scotland, will also need to report under Scottish legislation. In addition, a Charity Commission is also planned for Northern Ireland. Other changes expected to impact on the auditing requirements for charities in the coming year are: » modifications to FRED 40 “Accounting for Heritage Assets resulting from the publication of FRED 42 “Heritage Assets”, and in particular market valuations for specialist assets (e.g. lifeboats, churches, museum collections); » new types of legal entity such as the charitable incorporated organisation (COI); » revisions to the Charity SORP; and » additional compliance requirements issued by the Charity Commission.
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