Charity Audit Firm London - ICAEW-Regulated Charity Auditors
ICAEW and FRC-regulated charity auditors delivering comprehensive audit services for registered charities, not-for-profit organisations, and charitable incorporated organisations. Risk-based audit approach ensuring Charity SORP compliance, regulatory adherence, and operational optimisation.
Acumon is a prominent UK accountancy practice* with substantial resources and capabilities to address the sophisticated audit needs of charitable organisations. As a dedicated charity audit specialist, we possess the capability and background to fulfil your audit needs. We've supported charity audit clients in reducing expenses, enhancing savings, and strengthening cash flow, whilst upholding superior financial reporting and governance standards.
Our London-based auditors specialise in charity audit, not-for-profit audit, grant audit, independent charity examination, and charity VAT. Our holistic method merges audit proficiency with dedicated tax and VAT guidance, helping charities maximise eligible reliefs and enhance financial outcomes.
Charity Audit Service Range
Our London audit team delivers specialist charity audit services for diverse charitable entities, from small community groups to major national charities with intricate funding arrangements. We appreciate the distinctive challenges confronting charitable organisations, including fund accounting, restricted fund administration, grant compliance, and the complex regulatory environment affecting the charity sector.
Our charity audit offering includes:
Charity Audit
Comprehensive statutory audits for registered charities, ensuring compliance with Charity SORP, Companies Act requirements, and Charity Commission regulations. Our audits provide independent assurance on financial statements, internal controls, and regulatory compliance.
Not-for-Profit (NFP) Audit
Specialist audit services for not-for-profit organisations, including charitable incorporated organisations (CIOs), community interest companies (CICs), and other non-profit entities. We ensure compliance with sector-specific accounting standards and regulatory requirements.
Grant Audit
Dedicated grant audit services ensuring compliance with grant funding conditions, expenditure verification, and reporting requirements. Our grant audits provide funders with independent assurance on grant utilisation and compliance with funding agreements.
Independent Charity Examination
Independent examinations for charities below the audit threshold, providing cost-effective assurance while ensuring compliance with Charity Commission requirements. Our examinations are conducted in accordance with Charity Commission guidance and provide trustees with confidence in their financial reporting.
Charity VAT Advisory
Integrated charity VAT advisory services maximising VAT savings through exemption claims, zero-rating opportunities, and partial exemption optimisation. Our VAT expertise helps charities reduce costs and improve cash flow through effective VAT planning.
Charity and NFP Audit Compliance
We employ a risk-focused methodology to minimise "misstatements" and develop audit procedures that verify the accuracy and reliability of your audit report. As ICAEW and FRC regulated auditors, we assist with UK regulatory compliance and help you gain deeper insights into business risks. Where necessary, our audit work adheres to the following standards:
- International Standards on Auditing (UK): Our charity audits follow International Standards on Auditing (UK), maintaining alignment with international best practices and giving trustees and stakeholders assurance in audit quality.
- Charity SORP Compliance: Full adherence to Charity SORP standards, covering preparation of statement of financial activities (SOFA), balance sheet formatting, and reporting of restricted and unrestricted funds. We guarantee that financial statements precisely represent the charity's financial status, operations, and adherence to SORP reporting standards.
- FRS 102: Full compliance with Financial Reporting Standard 102 (FRS 102) for UK GAAP reporting, ensuring that charity financial statements meet the highest standards of financial reporting and provide stakeholders with clear, transparent information.
Our regulatory expertise extends beyond mere compliance. We help charitable organisations understand their commercial risks, identify opportunities for operational improvement, and ensure that financial reporting provides trustees and stakeholders with the information needed for effective governance and decision-making.
Benefits of Our Charity Audits
Our charity audit services deliver tangible benefits that extend beyond regulatory compliance, enabling charitable organisations to operate more efficiently, reduce costs, and maximise their impact. We ensure you:
- Are compliant with the Charity Commission
- Better understand your commercial risks
- Make the best use of the tax regime
- Optimise your VAT
- Operate efficiently
- Increase control
Efficient Charity Audit Delivery
We understand that charitable organisations need to minimise disruption while ensuring thorough audit coverage. Our charity audit services are designed to be efficient, cost-effective, and minimally disruptive to day-to-day operations:
- Flexible remote audit capabilities: Our charity audits can be performed with a hybrid approach, combining remote and on-site work to reduce operational disruption. We use secure digital platforms for document exchange, video conferencing, and collecting audit evidence.
- We minimise the time required for the audit: We have significant experience auditing a wide range of systems such as Microsoft Dynamics, Sage Line 50 and 200, and Xero. Our system expertise enables us to design efficient audit procedures and extract necessary audit evidence without unnecessary disruption.
Charity Audit Case Studies
Our charity audit services have delivered significant value to charitable organisations across diverse sectors, from arts charities to community organisations. The following case studies illustrate how our integrated approach to charity audit, tax planning, and operational advice has enabled charities to reduce costs, improve compliance, and maximise their impact.
Case Study: Client 1 - Charity Audit
- The organisation was experiencing difficulties with financial record-keeping and managing restricted fund allocations.
- We trained their finance team to manage their charitable funds effectively.
- The charitable company can now accurately report charitable funds and prevent overspending on restricted funds.
Case Study: Charity Shop - Audit Services
- The company was established to raise funds for its parent company but was not maximising available tax advantages.
- We recommended their CEO implement a retail gift aid scheme, enabling them to reclaim gift aid tax on donated goods sales.
- We recommended VAT registration, enabling the client to reclaim VAT on costs while maintaining the same pricing for donated goods.
- These changes resulted in additional income and cost savings, leading to increased gift aid donations to the parent charity.
Case Study: 3 Arts Charity - Audit Engagement
- The charity was not fully meeting Charity SORP compliance requirements. Our team guided them through the transition from Charity SORP (FRSSE 2015) to Charity SORP (FRS 102). Additionally, while the organisation staged live theatrical performances, they had not explored theatre tax relief opportunities that could enhance their cash flow position.
- We provided guidance to their Finance team on Charity SORP requirements to achieve full compliance.
- We presented to the finance committee the potential benefits available through theatre tax relief schemes.
- The statutory financial statements are now fully compliant with Charity SORP standards.
- The Trustees are evaluating their theatrical production activities in consideration of the theatre tax relief guidance we provided.
Case Study: 4 Arts charity - Audit Support
- The charity had produced loss-making theatrical shows and requested advice on whether these losses could be eligible for tax relief. The organisation was not meeting the relevant legislative requirements.
- We provided guidance on theatre tax relief eligibility and submitted a claim to HMRC on their behalf.
- The charity was awarded a payable tax credit of £19,000.
Senior Charity Audit Team
Our charity audit services are delivered by a team of experienced, qualified auditors with extensive expertise in charity sector auditing, Charity SORP compliance, and not-for-profit financial reporting. Our senior audit team includes partners and directors with decades of combined experience in charity audits, ensuring that your organisation benefits from the highest levels of expertise and professionalism.
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
- • UK, Ireland and Australia experience
- • Former top 5 global accounting firm experience
- • Technology, professional services, leisure, hospitality, manufacturing, wholesale and NFP sectors
Geeta Morgan FCA CTA MSCI Prof. PgDip (GRC)
Audit Director
- • Audited States of Guernsey
- • FCA – Fellow Chartered Accountant (ICAEW)
- • CTA – Chartered Tax Advisor
- • MSCI – Member of Chartered Institute for Securities & Investments
- • Compliance and tax expertise
Madhu Babu Chennupati ACCA, FCA (India), MBA
Head of Audit Quality & Technical
- • ACCA (Association of Chartered Certified Accountants)
- • FCA (Fellow Chartered Accountant – India)
- • MBA (Finance) – Manchester Business School
- • 10 years of experience delivering high-quality audits
- • Banking, technology, retail, manufacturing, and PIE audit experience
Why Choose Acumon for Charity Audits
Leading UK Accountancy Firm
As a leading UK accountancy firm, we have the resources, expertise, and infrastructure to meet the complex audit requirements of charitable organisations of all sizes, from small community charities to large national organisations.
ICAEW and FRC Regulation
Regulated by the Institute of Chartered Accountants in England and Wales (ICAEW) and the Financial Reporting Council (FRC), ensuring the highest standards of audit quality, professional conduct, and regulatory compliance.
Charity Sector Expertise
Extensive experience auditing charities, not-for-profit organisations, and charitable incorporated organisations across diverse sectors, including arts, education, healthcare, social services, and international development.
Integrated Tax and VAT Expertise
Our integrated approach combines audit expertise with specialist tax and VAT advice, enabling charities to maximise available reliefs, reduce costs, and improve cash flow through effective tax planning and VAT optimisation.
Efficient Audit Delivery
Our experience with charity accounting systems and our ability to conduct audits partially remotely enables us to minimise disruption while ensuring thorough audit coverage and timely completion.
Cost Reduction Focus
We've enabled our charity audit clients to reduce their costs and increase savings and cash flow through efficient audit delivery, tax optimisation, and operational improvement recommendations.
Next Step
Reach out to our team today to discuss your charity audit requirements. Our experienced professionals will provide expert guidance tailored to your organisation's specific circumstances, ensuring regulatory compliance while identifying opportunities to reduce costs and improve operational efficiency.
*Acumon is positioned among the leading UK accountancy firms, having been only £37k short of the top 100 in the Accountancy Age 50+50 list for 2024. Since publication, there have been significant market consolidations; Acumon has continued to grow organically and through strategic acquisitions. Our substantial client base and PIE audit license demonstrate our capability and market position.
Frequently Asked Questions
A charity audit is a statutory audit required for registered charities that meet certain size thresholds (typically annual income above £1 million or gross assets above £3.26 million). Charity audits must comply with Charity SORP (Statement of Recommended Practice), Companies Act requirements, and Charity Commission regulations. The audit provides independent assurance on financial statements, internal controls, and regulatory compliance, ensuring transparency and accountability for charity stakeholders.
Not all charities need a full audit. Charities with annual income above £1 million or gross assets above £3.26 million typically require a full audit. Smaller charities may only need an independent examination. The requirements depend on the charity's legal structure, income level, and assets. We can help determine your charity's audit requirements and provide the appropriate level of assurance.
Charity SORP (Statement of Recommended Practice) is the accounting framework for charities in the UK and Ireland. It sets out how charities should prepare their accounts and reports, including fund accounting, restricted and unrestricted funds, and specific disclosure requirements. Charity audits must ensure compliance with Charity SORP, which differs from standard company accounting standards. Our charity auditors have extensive expertise in Charity SORP compliance.
A charity audit is a full statutory audit providing independent assurance on financial statements, internal controls, and regulatory compliance. An independent examination is a lighter-touch review suitable for smaller charities that don't meet audit thresholds. Audits are more comprehensive and provide higher levels of assurance. We can help determine which is appropriate for your charity and provide both services.
A grant audit is a specific audit of grant funding to ensure compliance with grant conditions, verify expenditure, and provide funders with independent assurance on grant utilisation. Grant audits are often required by funders as a condition of funding and help ensure grants are used for their intended purposes. Our grant audit services provide funders with confidence while helping charities demonstrate compliance.
Our charity audit approach focuses on efficiency and value, helping charities reduce audit costs while maintaining quality. We use risk-based audit approaches, leverage technology, conduct remote work where possible, and focus on highest-risk areas. We also provide integrated tax and VAT advice to help charities maximise eligible reliefs and optimise financial outcomes, potentially offsetting audit costs through tax savings.
Still have questions? Get in touch with our team.
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