Charity Audits in London

Whether your charity needs an audit or an independent examination depends on its size and income. In the UK, an audit is legally required if your charity’s gross income exceeds £1 million, or if your income is over £250,000 and your total assets exceed £3.26 million. If your charity falls below these thresholds, it may only need an independent examination, which is a simpler form of scrutiny. However, your charity’s governing document or funders may still require a full audit, even if it’s not legally necessary. It’s important to check your constitution and grant agreements before making a decision. At Millet Accountants, we help trustees understand these thresholds clearly and advise on whether an audit is required. If your charity qualifies for an independent examination, we can provide that service too. Either way, we’ll make sure you meet all Charity Commission obligations and feel confident in your financial reporting.

A charity audit involves a thorough review of your financial statements, internal controls, and record-keeping to ensure they meet accounting standards and charity law. The process begins with a planning phase, where we get to know your charity’s structure, activities, and funding sources. We then carry out fieldwork, reviewing documentation and performing audit tests. Finally, we provide a detailed audit report with our findings, which trustees can present in the annual report and accounts. The time it takes depends on your charity’s size and how well-prepared the records are, but for most charities the process takes between three and five weeks from start to finish. At Millet Accountants, we always aim to minimise disruption and keep things running smoothly. We work closely with your finance staff or volunteers, providing clear guidance from start to finish, and making sure your audit is completed well before Charity Commission filing deadlines.

When auditing a charity, we assess whether your financial statements give a true and fair view of your charity’s finances. We look at how income is recognised, especially grant income and restricted funds, to ensure they’re reported correctly. We also examine expenditure to confirm that it has been properly authorised and recorded, and that it supports the charity’s charitable objectives. Fund accounting is a key area of focus, particularly how restricted and unrestricted funds are managed. We also test internal controls, review governance arrangements, and check for compliance with the Charities SORP (Statement of Recommended Practice). If your charity holds investments, owns property, or runs trading subsidiaries, these areas will also be reviewed. Our role is not just to confirm compliance, but to provide trustees with assurance that systems are working effectively and risks are being managed. At Millet Accountants, we explain our findings clearly and offer practical advice where needed.

Preparing well for an audit can make the entire process more efficient and less stressful for your charity. The first step is to ensure your financial records are up to date and accurate, including your income, expenditure, bank reconciliations, and fund balances. Keep supporting documentation such as invoices, grant letters, and donation records well organised and easy to access. It’s also helpful to have minutes from trustee meetings available, especially those discussing key financial decisions or budget approvals. At Millet Accountants, we provide a clear list of what we’ll need in advance, and we’re always happy to answer questions beforehand. Assigning a main point of contact within your charity to liaise with us during the audit can also streamline communication. Our goal is to make the audit feel manageable—not overwhelming—and to work alongside you in a respectful, professional way. Good preparation leads to a smoother audit and helps highlight your charity’s good governance.