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

Is my group required to have our Accounts audited?

Groups with registered charitable status

If your group is a registered charity in Scotland you would be required to have your Annual Accounts audited if any of the points below apply:-

  • your constitution requires the accounts to be audited
  • your charity's gross income is £500,000 or more
  • your charity has gross assets of £3.26 million or more
  • the Trustees have decided the accounts should be audited 
  • your members specifically request an audit
  • any enactment of Parliament requires an audit

If your group is incorporated as a Company but without charitable status

Community groups or organisations incorporated as Companies are required to have an audit unless they legally qualify as “small” and can take advantage of the exemption from the usual requirement of Companies to have their annual accounts audited.

To qualify as “small” and be exempt from audit the Company must satisfy two or more of the following:

  • have no more than 50 employees
  • have a turnover of not more than £6.5 million
  • have a balance sheet total of not more than £3.26 million

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, if your members request it, or if the Directors make a decision to do so.

Who can carry out an audit?

An audit has to be carried out by:-

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

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Last Updated 13/02/2013 16:05