The Government have announced that Charities with annual expenditure of $500,000 or more will be required to have their financial statements reviewed by a qualified accountant.
Charities with annual expenditure over $1 million will be required to have their financial statements audited.
The intention is that it will become the law (in 2015) to have an audit or review and that it will need to be completed by a qualified accountant and meet the requirements set out by the Financial Reporting Bill and no doubt the ethical obligations of the Institute of Chartered Accountants.
There is a bit of water to go under the bridge yet as we have the term “operating payments” and “annual expenditure” being used in different pieces of proposed legislation. This terminology will need to be addressed as it could make a difference between an audit or review or no review at all.