Does your entity need to be audited?

Depending on the size and nature of a particular entity, there are various federal and state based legislation which stipulate the requirement to be audited.

A summary by entity type is included below:

Charities

Reporting Body: ACNC

Legislation: Australian Charities and Not for profits Commission Act 2012, Australian Charities and Not for profits Commission Regulation 2013.

Audit Threshold: All large charities must be audited – annual revenue > $1M. All medium charities must be audited or reviewed – annual revenue > $250K to < $1M.

Associations (non-charity)

Reporting Body: NSW Fair Trading

Legislation: Associations Incorporation Act 2009, Associations Incorporation Regulation 2016.

Audit Threshold: All Tier 1 associations must be audited – annual revenue > $250K or current assets > $500K.

Co-operatives

Reporting Body: NSW Fair Trading

Legislation: Co-operatives (Adoption of National Law) Act 2012, Co-operatives National Regulations (NSW).

Audit Threshold: All large co-operatives must be audited – 2 out of 3 criteria must be passed;

- Annual revenue > $8M

- Gross assets > $4M

- Employees > 30

Companies Limited by Guarantee (non-charity)

Reporting Body: ASIC

Legislation: Corporations Act 2001, Corporations Regulations 2001.

Audit Threshold: All large companies limited by guarantee must be audited – annual revenue > $1M. All medium companies limited by guarantee must be audited or reviewed – annual revenue > $250K to < $1M.

Proprietary Companies

Reporting Body: ASIC

Legislation: Corporations Act 2001, Corporations Regulations 2001.

Audit Threshold: All large proprietary companies must be audited – 2 out of 3 criteria must be passed;

- Annual revenue > $25M

- Gross assets > $12.5M

- Employees > 50

All foreign-owned proprietary companies must be audited

Fundraising Entities

Reporting Body: NSW Fair Trading

Legislation: Charitable Fundraising Act 1991 (NSW), Charitable Fundraising Regulation 2015 (NSW).

Audit Threshold: All entities with annual fundraising revenue in excess of $250K must be audited.

Registered Organisations

Reporting Body: ROC

Legislation: Fair Work (Registered Organisations) Act 2009, Fair Work (Registered Organisations) Regulations 2009.

Audit Threshold: All registered organisations must be audited.

Real Estate Licensees

Reporting Body: NSW Fair Trading

Legislation: Property, Stock and Business Agents Act 2002, Property, Stock and Business Agents Regulation 2014.

Audit Threshold: Any licensees who held or received trust money during the financial year must be audited.

Australian Financial Services Licence (AFSL) Holders

Reporting Body: ASIC

Legislation: Corporations Act 2001, Corporations Regulations 2001.

Audit Threshold: All AFSL holders must be audited.

To discuss your entity’s financial reporting obligations, please feel free to contact us.


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