Análisis general de los resultados obtenidos de la simulación

(The constitution of the charity may impose more demanding requirements than, but cannot derogate from, the following rules)

Charitable companies

England & Wales Scotland N.Ireland

Independent examination where gross income is between £10,000 and £500,000

Where gross income is over £250,000, the examiner must be a member of a specified body

Independent examination required where gross income is less than £500,000

The examiner must be a member of a specified body

Audit required under the Companies (Northern Ireland) Order 1986

Audit required where:

 _{gross income is over}

£500,000 or

 _{gross assets are over}

£3.26 million and gross income is over £250,000

Audit must be undertaken by a registered auditor unless CCEW gives a dispensation

Audit required where:

 _{gross income is}

£500,000 or more or

 _{gross assets are over}

£2.8 million (accounting periods commencing before 1 April 2011) or £3.26 million for accounting periods commencing on or after 1 April 2011)

Audit must be undertaken by a registered auditor or by the Auditor General for Scotland

24. Section 1175 and Schedule 9 to CA 2006 removed from company law special rules about the audit of smaller companies that are charities. The effect is that if a small company charity claims exemption from audit under company law, it will still be subject to audit or independent examination under the 1993 Act or the 2005 Act (Scotland) if the relevant threshold set by charity law is exceeded. In Northern Ireland the special rules for the audit of small charitable companies provided by the Companies Act is currently retained. 25. In England and Wales, if CA 2006 requires the preparation of group accounts, then the

group accounts must also be audited under CA 2006 provisions and no requirement arises for those group accounts to be prepared or audited under the 1993 Act. If group accounts are prepared on a voluntary basis under CA 2006 then the group accounts must also comply with the requirements of the Charities Act 1993 which are consistent with company law requirements. Group accounts prepared by a small company parent charity are subject to audit under the provisions of charity law even if audit exemption has not been claimed under CA 2006. In Scotland, under the 2006 Regulations (Scotland) (as amended), group accounts must be prepared where the consolidated gross income is £500,000 or more and these are always audited under the 2006 Regulations (Scotland) (as amended), even where they are also prepared and audited under CA 2006. 26. The differences between an audit undertaken in accordance with CA 2006 and an audit

undertaken in accordance with charity legislation include:

 _{to qualify for exemption from CA 2006 the directors must make the prescribed}

statement on the company balance sheet;

 _{CA 2006 requires that the auditor explicitly reports on the consistency of the annual}

report with the financial statements. Audit reports under charity law do not;

 _{CA 2006 audit report is signed by a senior statutory auditor. Audit reports under}

charity law can be signed in the name of the firm;

 _{CA 2006 permits the auditor to limit liability. There is no such provision in charity law.}

27. A small company charity claiming audit exemption under CA 2006 may file abbreviated accounts without any audit report with Companies House. However, charity sector practice is to file the full statutory accounts with Companies House and to attach the audit or independent examination report, prepared under the 1993 Act or the 2005 Act (Scotland), with the accounts filed. Company charities must file their full statutory accounts and annual report with CCEW and/or OSCR and must attach the relevant audit or independent examination report to the accounts filed.

Industrial and Provident Societies

28. In England and Wales, charitable Industrial and Provident Societies are exempt from audit if their turnover is less than £90,000. An audit exemption report is required if turnover is more than £90,000 and less than £250,000 and total assets are less than £2.8

million. An audit is required above this threshold (exemption not available if there is a subsidiary). In Scotland, all charitable Industrial and Provident Societies are also subject to the provisions of the 2005 Act (Scotland). They must prepare accounts on the accruals basis which must be audited where gross income is £500,000 or more or where gross assets are more than £2.8 million (this threshold increases to £3.26 million for accounting periods commencing on or after 1 April 2011). Below these thresholds, independent examination by a member of a specified body must be carried out.

Non-company charities

England & Wales Scotland N.Ireland

Independent Examination where gross income is between £25,000 and £500,000

Where gross income is over £250,000 the examiner must be a member of a specified body

Independent examination required where gross income is less than £500,000

Where gross income is £100,000 or more, the examiner must be a member of a specified body. This threshold will increase to £250,000 for accounting periods commencing on or after 1 April 2011

[Will be governed by the provisions of the Charities Act (Northern Ireland) 2008]

Audit required where:

 _{gross income is over}

£500,000 or

 _{gross assets are over}

£3.26 million and gross income is over £250,00059

Audit must be undertaken by a registered auditor

Audit required where:

 _{gross income is}

£500,000 or more or

 _{gross assets are over}

£2.8 million (accounting periods commencing before 1 April 2011) or £3.26 million (accounting periods commencing on or after 1 April

[Will be governed by the provisions of the Charities Act (Northern Ireland) 2008]

unless CCEW gives a dispensation

2011) and accruals accounts are prepared

Audit must be undertaken by a registered auditor or by the Auditor General for Scotland

29. A charity’s governing document may require an audit, even though the charity may be below the threshold and therefore only require an independent examination. In such circumstances the trustees may wish to approach CCEW/OSCR with a view to amending the requirement of the governing document to bring it in line with statutory provisions. Where the intention of the governing document is ambiguous in terms of the level of scrutiny required the trustees may seek the advice of the regulator or seek to amend the relevant clause in line with the requirements of charity law.

OTHER ASPECTS OF LAW RELEVANT TO AUDITORS