Your questions: What is the difference between an audit and a review of our financial report?

Recent changes to the Charities Act 2005 create statutory audit and review requirements for medium and large Registered Charities from 1 April 2015. If a charity’s total operating expenditure for the previous two accounting periods was:

  • over $500,000 (medium) – financial statements must be either audited or reviewed by a qualified auditor; or
  • over $1 million (large) – financial statements must be audited by a qualified auditor.

Registered Charities with total operating expenditure of less than $500,000 are not required by law to have an audit or review. However, they may be required by their rules (e.g. trust deed, constitution, or charter) or as a condition of receiving a grant to have their financial statements audited or reviewed.


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