Audit exemptions for charities
Published 23 May 2013
Applies to England and Wales
© Crown copyright 2013
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1. About charity audits
Parliament sets the audit thresholds and requirements with specific consideration of the public interest in charity and they need to maintain high standards of accountability to maintain public confidence in charity. Therefore the Commission will not agree dispensations unless there are truly exceptional circumstances.
2. How the Commission considers applications for audit exemptions
When considering whether to offer dispensation, consideration will be given to the exceptional circumstances outlined by the applicant. The charity must demonstrate that the circumstances arising are on a ’one-off’ basis and show that the exceptional circumstances and the nature of the funds otherwise subject to audit are such that there is a reduced risk to the charity to justify a lower standard of external scrutiny.
The Commission’s operational guidance sets out the grounds for granting a dispensation. If applying for a dispensation, please provide all the information requested.
For accounting periods beginning on or after 1 April 2008, audit dispensations from audits under the Charities Act can be granted to eligible small charitable companies where audit exemption has first been claimed under the Companies Act.