Several recent developments such as the increase in the audit threshold to £1,000,000 and the increased threshold for preparation of consolidated accounts to £1,000,000, have led to the CCEW publishing a consultation on updated Directions and guidance which independent examiners must follow. Some of the key changes include the following:
- the number of Directions have increased
- the order of some of the Directions has changed
- guidance has been reworded to use a plain English approach emphasising the word ‘should’
- additional guidance is provided on conflicts of interest / related parties and financial sustainability
- new reports for company and non-company charities.
It is anticipated that the work completed by independent examiners will not change significantly, however the report that is issued on a charity’s financial statements will look different.
The consultation is now closed and the CCEW are currently analysing the feedback. We will update you on the impact of the changes in due course. The consultation is available to view here.
This article features in our Charity Newsletter Spring 2017. To see the full version please click here.
If you would like to find out more about any of the topics covered in our Charity Newsletter and how we at Robinson Reed Layton can assist, please contact our Charities Partner, Mark Williams, on 01872 276116 or mark.williams@rrlcornwall.co.uk. You can signup to receive our Charity Newsletter here.
This publication has been prepared by Robinson Reed Layton. It is to be treated as a general guide only and is not intended to be a comprehensive statement of the law or represent specific advice. No liability is accepted for the opinions it contains, or for any errors or omissions. All rights reserved.
Updated 24 April 2017