The Cabinet Office have announced that there will be changes in the audit threshold with effect for years ending on or after 31 March 2015.
- Increasing the income threshold above which an audit is required from £500K to £1 million per annum.
- Increasing the group income threshold above which an audit is required from £500K to £1 million per annum.
- Increasing the preparation threshold for group accounts from £500K to £1 million per annum.
The existing Asset test threshold is not being increased at this time. This therefore means that Charities with assets in excess of £3.26 million will still require an audit if their income exceeds £250K per annum.
The term assets refers to gross assets before liabilities and would obviously include both property and Bank balances, debtors and stock.
This is particularly relevant to those Charities with significant properties on their balance sheet who may still require an audit because of the size of their assets despite their income being below £1 million.