Charities Act 2006
The audit threshold under the Charities Act 2006 has been increased.
The gross income threshold above which a charity must have an audit has been raised from £250,000 to £500,000. The assets threshold has also doubled (to £2.8m). These changes are detailed in Section 32.
The changes to the audit threshold will apply to financial years of charities beginning on or after 27 February 2007 and affect both unincorporated and incorporated charities.
The interim increases change the reporting accountants requirements with gross income between £90,000 and £500,000 and gross assets £2.8m or less and independent examination requirements applying where gross income exceeds £10,000 but is less than £500,000 and gross assets are £2.8m or less, or where gross assets exceed £2.8m, gross income is £100,000 or less.
For further details visit the following links:
ACCA published an article in issue 75 of In Practice that discussed the key changes.