Finance
Audit threshold
Formal definition
The audit threshold is the level of gross income or total assets above which a UK charity is legally required to have a full professional audit of its accounts.
What this actually means for you
If your income exceeds £1 million (or £250,000 with assets over £3.26 million), you must appoint a qualified auditor instead of just an independent examiner. In practice, this is how audit threshold should be applied in your charity.
Example: As your charity grows, you monitor income closely each year to plan for the higher costs and more intensive scrutiny of a full statutory audit once you cross the threshold. This example shows audit threshold in day-to-day use.
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