Wylie & Bisset have backed calls from the Institute of Chartered Accountants of Scotland.
An accountant and business advisory firm has called for Scotland’s charity audit threshold to be doubled and brought in line with England and Wales.
Wylie & Bisset have backed calls from the Institute of Chartered Accountants of Scotland (ICAS) to raise the charity audit threshold from those with an income of £500,000 a year.
They warned that, at the current threshold, there is an increasing risk some Scottish charities may not be able to secure the services of an auditor for their statutory audit.
Fewer auditors are currently available to take on audits as a result of increases to the company law audit threshold, with a drop in registrations.
ICAS said this advice must be heeded as a “matter of urgency”, with a number of charities finding it difficult to source auditors.
Experts have now said Scottish charities operating within the audit regime should monitor income levels throughout the year to measure any risk of breaching the audit threshold.
Rory McCall, associate director, audit at Wylie & Bisset, told Scottish Business News: “There are more and more charities breaching the audit threshold naturally as their income levels rise over time due to inflationary factors, Covid-related funding and other causes, and it is now time for the government to consider raising the audit threshold.
“At £1 million, the audit threshold in England and Wales is double what it is in Scotland, and I don’t see why Scotland should deviate significantly from that threshold.
“Given the number of charities in Scotland struggling to find auditors, it is now time to consider increasing the threshold and bringing it into line with what we see in England and Wales.
“It’s much easier for a charity to find an auditor if it has plenty of advance warning rather than passing the year end before realising that it has breached the audit threshold, so planning ahead is key.”