#Levels of scrutiny chart professional
#Levels of scrutiny chart free

a decision of the charity trustees to have the accounts audited.the charity’s gross income and the value of assets held (before deduction of liabilities) for the accounting period.any reference to audit in the governing document.The type of external scrutiny appropriate for a particular charity will be determined by: However, under the Regulations if the term ‘audit’ is used in a charity’s governing document or governing document the charity must have its accounts audited by a registered auditor or a person appointed by the Accounts Commission for Scotland or by the Auditor General for Scotland (responsible principally for public bodies).ģ.2 External scrutiny and type of accounts prepared Historically, the term ‘audit’ has been used loosely to describe any independent scrutiny of accounts.

#Levels of scrutiny chart professional

It offers an assurance that nothing has been found that needs to be brought to the attention of readers of the accounts rather than the positive expression of a professional opinion based on an audit. Charities whose gross income means they could carry out an independent examination under the Regulations may wish to discuss with their funding bodies what is meant by the term ‘audit’, and if external scrutiny by an independent examiner as required under the Regulations would be sufficient.Īn independent examination is a form of external scrutiny of the accounts which is less rigorous than an audit. In addition, some funding bodies require the charities to have their accounts ‘audited’. Notification of the change to the governing document must also be sent to OSCR within three months of the change being made.

amend the governing document (where they have the power to do so) to reflect the charity trustees’ or members’ intentions regarding external scrutiny.Īny change to the governing document must be carried out in accordance with the terms of the governing document and with consideration of any professional advice received.

retain the term audit because they decide that the accounts should continue to be audited, or.

Charity trustees of such charities may wish to review their governing document and: The charity trustees of charities not required to have an audit under the Regulations or any enactment may consider that the benefits of having an audit are outweighed by the costs. Many charity governing documents use the term ‘audit’ when describing the type of external scrutiny to which the accounts should be subject. In undertaking an audit, a registered auditor must comply with the UK Financial Reporting Council’s ethical standard for auditors and International Standards on Auditing (UK).

#Levels of scrutiny chart free

There are two main types of external scrutiny to which charities’ accounts are subject:Īn audit provides reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or other irregularity or error. The aim of external scrutiny is to give a degree of confidence in the words and figures presented in the accounts and to confirm that they have been prepared in accordance with the Regulations. Accounts must be independently scrutinised.