C1Part 8Charity accounts, reports and returns

Annotations:
Modifications etc. (not altering text)

CHAPTER 3Audit or examination of accounts

Audit or examination of individual accounts

145Examination of accounts an option for lower-income charities

1

If section 144(2) does not apply to a financial year of a charity but its gross income in that year exceeds £25,000, the accounts of the charity for that year must, at the election of the charity trustees, be—

a

examined by an independent examiner, that is, an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts, or

b

audited by a person within section 144(2)(a) or (b).

2

Subsection (1) is subject to—

a

subsection (3), and

b

any order under section 146(1).

3

If subsection (1) applies to the accounts of a charity for a year and the charity's gross income in that year exceeds £250,000, a person qualifies as an independent examiner for the purposes of subsection (1)(a) if (and only if) the person is independent and—

a

a member of one of the bodies listed in subsection (4), or

b

a Fellow of the Association of Charity Independent Examiners.

4

The bodies referred to in subsection (3)(a) are—

a

the Institute of Chartered Accountants in England and Wales;

b

the Institute of Chartered Accountants of Scotland;

c

the Institute of Chartered Accountants in Ireland;

d

the Association of Chartered Certified Accountants;

e

the Association of Authorised Public Accountants;

f

the Association of Accounting Technicians;

g

the Association of International Accountants;

h

the Chartered Institute of Management Accountants;

i

the Institute of Chartered Secretaries and Administrators;

j

the Chartered Institute of Public Finance and Accountancy.

F1k

the Institute of Financial Accountants;

l

the Certified Public Accountants Association.

5

The Commission may—

a

give guidance to charity trustees in connection with the selection of a person for appointment as an independent examiner;

b

give such directions as it thinks appropriate with respect to the carrying out of an examination in pursuance of subsection (1)(a);

and any such guidance or directions may either be of general application or apply to a particular charity only.

6

The F2Secretary of State may by order—

a

amend subsection (3) by adding or removing a description of person to or from the list in that subsection or by varying any entry for the time being included in that list;

b

amend subsection (4) by adding or removing a body to or from the list in that subsection or by varying any entry for the time being included in that list.