In a speech to charities in London, the head of the ICAEW says there may be a future alternative to “over-bearing” auditing of smaller charities.
Mark Spofforth, president of the ICAEW, talked about the possible changes to charity audit following Lord Hodgson’s Review of the Charities Act 2006.
He said that recommendations to raise the audit limit for charities may result in a reduction in the number of charities from the lower end of the income scale that are required to audit their accounts.
Talking to the Rathbones’ Annual Charity Symposium at the British Museum, he said: “We may find in the future that there will be less audited sets of accounts.
“There is a feeling that audit as a service may be overbearing and over-expensive for some of the smaller charities.”
He added that this was particularly interesting as audit limits in the corporate sector have already gone up in light of changes in legislation.
“It would be up to us – my institution in particular – to find ways of still giving the public the information so they can continue to trust charities,” said Spofforth.