Sep 4

2026

When a Northern Ireland charity needs an audit rather than an independent examination

For a registered charity in Northern Ireland, the key statutory audit threshold is annual gross income above £500,000. Unlike the rules applying in England and Wales, there is no separate Northern Ireland audit trigger based on an asset threshold of £3.26 million.

Every registered Northern Ireland charity must have its accounts independently reviewed. Below the audit threshold, that will normally be an independent examination unless the governing document, a funder or another legal requirement requires an audit.

The thresholds that matter

Charities with income above £250,000 must prepare accruals accounts. The current requirements apply to registered charities for relevant financial years beginning on or after 1 January 2016. The Charity Commission for Northern Ireland provides the regulatory guidance, while NICVA’s summary of the accounting regulations for charities provides a practical overview.

Independent examination and audit are different jobs

An independent examination provides a lower level of scrutiny than an audit. The examiner reviews the accounts and underlying records and considers whether anything has come to their attention that requires reporting. An auditor performs more extensive work and expresses an audit opinion on the financial statements.

A charity approaching £500,000 of income should therefore prepare for the transition before its year end. SCC’s charity and not for profit accounting team can help organisations plan the reporting and assurance requirements.

This should not be confused with internal audit. Our guide to what to expect from your first internal audit explains how internal audit focuses on governance, risk and controls rather than providing the statutory opinion on annual financial statements.

Where charitable companies need extra care

A charity that is also a company must comply with both charity and company law. However, the Northern Ireland charity regulations apply the £500,000 charity audit threshold to registered charitable companies as well as unincorporated charities.

For accounting periods beginning on or after 6 April 2025, a company is generally considered small if it meets at least two of three limits: turnover of no more than £15 million, balance sheet total of no more than £7.5 million and no more than 50 employees. Those company-size thresholds do not override a charity’s separate obligation to obtain an audit once its income exceeds £500,000.

Groups require particular attention. Where the gross income of a charity group exceeds £500,000 after excluding intra-group transactions, group accounts must be prepared and audited.

What trustees should check before year end

Trustees should monitor current-year income rather than relying on the previous year’s accounts. Reliable monthly management accounts can help identify whether the charity is approaching the £500,000 threshold early enough to appoint an auditor and prepare supporting schedules.

They should also check whether:

• the governing document requires an audit regardless of income;
• a grant agreement or funder requires audited accounts;
• the existing independent examiner has the required qualification once income exceeds £250,000; and
• subsidiaries or linked entities mean group income exceeds £500,000.

If growth is driven by grant income, restricted and unrestricted funds should be reconciled before audit fieldwork starts. The record-keeping principles overlap with those covered in what to expect from your first internal audit.

Charities operating on both sides of the border can also use SCC’s cross-border accounting and tax specialists to review the reporting requirements applying to each legal entity.

Where disputed transactions, restricted-fund allocations or unexplained balances require investigation, SCC’s forensic accounting specialists can provide separate support. If the organisation is facing financial pressure, the business recovery and restructuring team can assess the available options.

If your Northern Ireland charity is approaching £500,000 of annual income, reviewing the position before year end gives trustees more time to appoint the appropriate adviser and prepare for a smooth audit.