We provide statutory charity audits for organisations across the UK. We work closely with trustees and finance teams who need an auditor that understands the specific charity audit rules.
Our audit teams are based in Bristol, Bath, Yeovil and Taunton, with clients across the South West and nationally.
Does your charity need an audit?
Not every charity requires a statutory audit, but Charitable companies are subject to both the Companies Act 2006 and the Charities Act 2011 (as amended by the Charities Act 2022).
Under the Charities Act, the level of external scrutiny depends on income and assets. New thresholds apply to financial years ending on or after 30 September 2026:
| Requirement | Year ends on or after 30 Sep 2026 |
|---|---|
| Independent examination (IE) or audit needed | Income over £40,000 |
| IE must be done by a professionally qualified examiner | Income over £500,000 |
| Statutory audit: Income test | Income over £1.5m |
| Statutory audit: Assets test | Income over £500,000 and gross assets over £5m |
| Group accounts and group audit | Group income over £1.5m |
If a charitable company isn’t exempt under the Companies Act, it needs a Companies Act audit, whatever its charity-law position.
If it is exempt under company law but has income over £1.5m income (or caught by the assets test), it needs a Charities Act audit. In that case, charitable companies must include a statement on the balance sheet that the company is exempt from a Companies Act audit. A Companies Act audit will fulfil the requirements of a Charities Act audit if the company chooses one.
Some charities may also be required to obtain an audit under the Co-operative and Community Benefit Societies Act 2014 (CCBSA).
What a charity audit covers
As you know, charity audits go further than a standard company audit and use their own set of sector specific guidance and rules, which are regularly updated.
A typical charity audit would explore the following areas:
Financial
- True and fair view of the accounts
- Compliance with the Charities SORP (FRS 102)
- Restricted and designated fund treatment
- Endowment funds
- Trustees’ annual report consistency
- Adequate accounting records
Governance
- Funds applied in line with your charitable objects
- Related party transactions and disclosure
- Reserves policy and adequacy
- Going concern in the context of your funding model
When working with charities on their audit, we spend the time to get to know trustees, understand their organisation and tailor our approach to them, while meeting the requirements of UK auditing standards.
Why charity trustees come to us
We work closely with trustees at a number of national charities, who choose our audit expertise for the following reasons:
Experience across charity types
We work with a wide range of charitable organisations, such as community groups, housing associations and grant-making trusts.
ICAEW-registered auditors
ML Audit LLP is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales (ICAEW).
South West based with national reach
Our offices in Bristol, Bath, Yeovil and Taunton give us strong regional roots, with the capacity to support charities operating nationally.
Forward-looking, not just compliant
We use the audit process to highlight opportunities and flag risks – not just to sign off the accounts. Every engagement includes practical observations for the trustee board.
In each engagement we look to add value, help with strategic decision-making and provide insights and services that help charities to thrive.
Our goal is to help trustees tell their charity’s story, so that regulators, donors and others have a clear picture of their organisation’s financial health.
Common questions about charity audits
Do we need an audit or an independent examination?
It depends on your income and legal structure, but if your charity has a gross income over £1.5 million or income over £500,000 and gross assets over £5 million, a statutory audit is required.
Below those thresholds, an independent examination is the usual route. This is a lighter-touch review by a suitably experienced person. It’s also worth adding that charities under £40,000 need neither, and that a governing document or funder can still require an audit
If you are unsure which applies to your organisation, we are happy to advise. Please get in touch and we can confirm what is needed.
What is the filing deadline for charity accounts?
Registered charities in England and Wales must file their accounts with the Charity Commission within ten months of the end of their financial year. For example, if your year end is 31 March, accounts are due by 31 January the following year.
Charitable companies also have obligations under the Companies Act, which Charitable companies must also file their accounts at Companies House within nine months of their financial year end.
We will confirm the relevant deadlines for your organisation at the outset of the engagement.
What does a charity audit cost?
Fees depend on the size and complexity of your charity and may be based on your income, the number of funds you operate, the investments your organisation holds and the level of expertise required. We provide a fixed-fee quote before work begins so there are no surprises.
What happens if we file our accounts late?
If your accounts are late, they will be flagged on the regulator’s register as such, which could lead to loss of donor or grant trust, potential regulator intervention and, in some cases, a potential criminal liability for trustees in England and Wales.
We manage the process to keep you on track and flag any risks to your timeline well in advance.
What is the Charities SORP and why does it matter?
The Charities Statement of Recommended Practice, known as the SORP, is the sector-specific guidance that governs how charities in England, Wales, Scotland and Northern Ireland prepare their accounts.
It is based on the latest FRS 102 accounting standard and sets out specific rules for recognising income, accounting for restricted funds and presenting the trustees’ annual report.
Material departures from the SORP are likely to result in a modified audit opinion.
Can you audit charities outside Bristol, Bath, Yeovil and Taunton?
Yes. While our offices are in the South West, we work with charities across the UK. Many of our charity clients operate nationally or have trustees spread across different regions – this is not a barrier. We are experienced in conducting audits remotely and on-site as needed.
What do trustees need to provide for the audit?
We will send you a detailed information request at the start of the engagement, but typically you will need to provide your draft accounts, bank statements, income and expenditure records, details of any restricted funds and grant conditions, and minutes of trustee meetings. We aim to make this process as straightforward as possible and will work around your team’s availability.
Speak to our charity audit specialists
We work with charities across the South West and beyond. Find your nearest office or contact us directly.
All audits are carried out by ML Audit. ML Audit is a trading name of ML Audit LLP, a limited liability partnership registered in England with LLP number OC449136. The registered office of ML Audit LLP is Winchester House, Deane Gate Avenue, Taunton, TA1 2UH.