Charity Audit

We audit registered charities, charitable companies, CIOs and not-for-profits of every size, combining a risk-based audit approach with integrated charity VAT and tax advice. That means your audit does more than tick the Charity Commission's box: it strengthens fund controls, surfaces reliefs you may be missing, and lands on time for your trustee meeting and annual return.

Charity Audit Thresholds in 2026

In England and Wales, a charity currently requires a statutory audit if its gross annual income exceeds £1 million, or if its gross assets exceed £3.26 million and income exceeds £250,000. Below those levels, charities with income over £25,000 need an independent examination, and where income exceeds £250,000 the examiner must be professionally qualified. Charitable companies must also consider Companies Act requirements, and your governing document or funders may require an audit regardless of size.

Change is coming: the government has announced threshold increases intended to take effect for financial years beginning on or after 1 October 2026 — the audit income threshold rising from £1 million to £1.5 million, the asset test from £3.26 million to £5 million (with the accompanying income test moving from £250,000 to £500,000), the independent examination threshold from £25,000 to £40,000, and the qualified examiner threshold from £250,000 to £500,000. If you sit near a threshold, we will map out what applies to your current and next financial year.

The New Charities SORP from 2026

A new Charities SORP was published on 31 October 2025 and applies for accounting periods beginning on or after 1 January 2026. It introduces a three-tier reporting framework — Tier 1 for charities with income up to £500,000, Tier 2 for income between £500,000 and £15 million, and Tier 3 above £15 million — alongside changes to income recognition and lease accounting that bring most operating leases onto the balance sheet in line with the updated FRS 102.

For many charities this is the biggest reporting change in a decade. We help trustees identify their tier, restate lease arrangements, and plan the first set of accounts under the new SORP well before the audit starts.

Charity Audit Service Range

Our London audit team specialises in services for diverse charitable entities, addressing fund accounting, restricted fund administration, grant compliance and complex regulatory environments:

Charity audit — statutory audits for registered charities, compliant with the Charities SORP, Companies Act requirements and Charity Commission regulations.

Not-for-profit audit — specialist audits for charitable incorporated organisations (CIOs), community interest companies (CICs) and other non-profit entities.

Grant audit — verification of compliance with grant funding conditions, expenditure and reporting requirements.

Independent examination — cost-effective assurance for charities below the audit threshold, meeting Charity Commission requirements.

Charity VAT advisory — integrated advice maximising VAT savings through exemption claims, zero-rating opportunities and partial exemption optimisation.

Charity and NFP Audit Compliance

We employ a risk-focused methodology and work to International Standards on Auditing (UK), the Charities SORP — covering the statement of financial activities (SOFA), balance sheet formats and the reporting of restricted, unrestricted and endowment funds — and FRS 102 for UK GAAP reporting. The result: an audit that satisfies the Charity Commission and your funders while giving trustees a genuinely useful view of financial risk and control.

Efficient Charity Audit Delivery

Our charity audits run on a hybrid basis, combining remote and on-site work to reduce disruption for stretched charity finance teams. We have hands-on system expertise with Microsoft Dynamics, Sage Line 50 and 200, and Xero, and our client portal keeps document requests in one place rather than in a long email chain.

Charity Audit Case Studies

Case study 1: an organisation struggled with financial record-keeping and restricted fund management; our team provided training enabling accurate reporting and prevention of fund overspending.

Case study 2 (charity shop): a company implemented our retail gift aid scheme and VAT registration recommendations, resulting in additional income and cost savings for parent charity donations.

Case study 3 (arts charity): an organisation transitioned from Charities SORP (FRSSE 2015) to Charities SORP (FRS 102) with our guidance; trustees evaluated theatre tax relief opportunities for enhanced cash flow.

Case study 4 (arts charity): a charity received a £19,000 payable tax credit following our guidance on theatre tax relief eligibility and HMRC claim submission for loss-making theatrical shows.

Senior Charity Audit Team

J Stuart Thomson MA CA FCT ATT MCSI, Partner — Chartered Accountant (ICAS & ICAEW), Fellow of Corporate Treasurers, Member of Securities & Investments, Association of Tax Technicians.

Edmund Cartwright FCCA, FMAAT, Partner — Fellow of ACCA, ICAEW audit authorisation, FRC Responsible Individual for PIE audits.

Rob Wilkes FCA, Audit Director — 34 years of audit experience across the UK, Ireland and Australia, former top 5 global accounting firm experience, sectors including technology, professional services, leisure, hospitality, manufacturing, wholesale and NFP.

Geeta Morgan FCA CTA MSCI Prof. PgDip (GRC), Audit Director — audited the States of Guernsey; Fellow Chartered Accountant (ICAEW), Chartered Tax Advisor, Member of Chartered Institute for Securities & Investments, with compliance and tax expertise.

Madhu Babu Chennupati ACCA, FCA (India), MBA, Head of Audit Quality & Technical — ACCA, Fellow Chartered Accountant (India), MBA (Finance) from Manchester Business School, 10 years of experience delivering high-quality audits across banking, technology, retail, manufacturing and PIE audits.

What You Get With Acumon

• Statutory charity audits compliant with the Charities SORP, Companies Act and Charity Commission regulations
• Independent examinations for charities below the audit threshold
• Clear advice on the current thresholds and the announced October 2026 increases
• SORP 2026 transition support: tier assessment, lease accounting and income recognition
• Grant audits verifying compliance with funding conditions
• Integrated charity VAT advisory: exemption claims, zero-rating, partial exemption optimisation
• Hybrid remote/on-site delivery to reduce disruption for small finance teams

Why Acumon for Charity Audit?

• ICAEW and FRC-regulated charity auditors
• Named senior team: J Stuart Thomson (Partner), Edmund Cartwright (Partner, FRC Responsible Individual for PIE audits), Rob Wilkes (Audit Director, 34 years' experience), Geeta Morgan (Audit Director, audited the States of Guernsey), Madhu Babu Chennupati (Head of Audit Quality & Technical)
• Case study: arts charity received £19,000 payable tax credit via theatre tax relief guidance
• System expertise: Microsoft Dynamics, Sage Line 50 and 200, Xero
• Only £37k short of the top 100 in the Accountancy Age 50+50 list for 2024

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.