The term “audit” is often used to describe the checking of the bookkeeping and accounting records.
A full audit for a charity is only required when the income exceeds £1,000,000 — unless a funder insists on a full audit by a registered auditor, or it is expressly stated in the governing document.
For charities with income of over £25,000 an independent examination is required. This is a legally acceptable form of external scrutiny of their end of year accounts. There are rules for who can do this and guidelines on how it should be done. Some organisations may opt to have an independent examination, because their constitution requires it, or they want an assurance about the quality of their record keeping.
Many smaller groups will have an independent check of their records, alongside the accounts preparation work. This will give some assurance about the bookkeeping and the documentation kept by the organisation.
Help with your audit
A range of services provided by WYCAS (West Yorkshire Community Accounting Service) are available to help your organisation with its "audits". These services may help you to get your organisations financial foundations in order. To find out more contact WYCAS.
“Efficient independent examination / preparation of annual accounts as always and help and advice re our transition to company limited by guarantee”