Charity audit exemption and long accounting periods
During Monday’s charities update in Preston, we had a query about the £1M charity audit exemption threshold.
The £1m is the threshold in charity law and applies irrespective of the length of the accounting period, 12months, shorter or longer. This can be an issue if a charity with annual income of, say, £800K extends it period to 15m and end up with, say, £1.2m income. It will now need an audit as it exceeds the £1M limit!
This applies whether the charity is unincorporated, a company charity or a CIO.