Auditing and Examining your Accounts
Are you a charity or an SMEs (Small & Medium-sized Enterprises), and worried whether your organisation / company is exempt from, or qualify for partial exemption from full Audit?
The framework for Accounting and Reporting has evolved significantly over the years. The Charities Act 2006 simplifies the rules about when a professional audit is required, and reduced and later eliminated the differences in the thresholds for Company and Non-company Charities. However in the past, the accounting and reporting requirements were more complicated because charitable companies had to comply with specific thresholds set out under company law which were quite different to those applying to non-company charities.
Charitable companies still need to report separately to the Charity Commission and the Companies House when filing their report and accounts and must compile their accounts and Director’s report in compliance with company law.
Examinations
Are you a charity or an SMEs (Small & Medium-sized Enterprises), and worried whether your organisation / company is exempt from, or qualify for partial exemption from full Audit?
External assurance offers an opportunity for charity trustees to ensure that their accounts are presented to the public as fairly representing what has happened in the accounting period for the charity.
A review by an independent third party will provide an assurance that the trustees are maintaining proper financial records and that the accounts reflect those records.
For charities with gross income over £25,000 in the accounting year there is a legal requirement for external scrutiny.
For further help on thresholds and exemptions please visit http://www.charitycommission.gov.uk/Charity_requirements_guidance
/Accounting_and_reporting/Auditing_accounts/default.aspx , or give us a call, use our contact form to request for a non-obligatory initial review of your company’s activities
Audit
External review of your accounts offers the Directors an opportunity to ensure that their accounts represent the true and fair view activities of the company over a period of time.
An independent Accountant’s Report (Audit Exemption Report) by an external Accountant does give the assurance your Bank, Financiers & Shareholders and other interested third parties require in order to confidently trust the figures on the Financial Statements.
For further help on thresholds and exemptions please visit http://www.companieshouse.gov.uk/about/gbhtml/gp2.shtml#ch6 , or give us a call, use our contact form to request for a non-obligatory initial review of your company’s activities
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