Audit or Review?

Audit or Review Guidance

Legislated requirement for an audit or review


  • For-Profit entities


If you are a for-profit entity who has to prepare General Purpose Financial Statements then you have a requirement for these financial statements to be audited.  Any other for-profit entities can voluntarily choose to have an audit or review.


  • Registered Charities


Legislated requirements for an audit and review were introduced for reporting periods ending 31 March 2016.


  • An audit if your annual expenditure was greater than $1,100,000 in each of the immediately prior two years.
  • A review (or an audit) if your annual expenditure is >$550,000 in each of the immediately prior two years.


 Many registered charities have founding documents that require either an audit or review as part of their governance processes.


  • Incorporated Societies (who are not registered charities)


Under the Incorporated Societies Act 1908 there is no legislated requirement to have an audit or review.  With the passing of the Incorporated Societies Act 2022, Large Societies will be required to have an audit from the date of (re)registration under the 2022 Act (no later than 5 April 2026).


Irrespective of legislated requirements, many Societies have founding documents that require either an audit or review as part of their governance processes. Or, they may be required by their funders to have either an audit or review.


  • OTHERS


Other situations may exist where an audit is required, normally to confirm compliance with specific requirements, including:


  • Ministry of Education (MoE) Funding Audits


Verification of the funding received from the MoE and how it was spent as required by the Education Act.  Due to be filed with the MoE by 30 June the year following balance date.


  • Gaming Act required audits


The Gambling Act 2003 requires Class 4 societies to provide audited financial statements to the Department of Internal Affairs within three months of the end of a society's financial year.


  • Retirement Villages


Retirement Villages are Issuers and are required to be audited annually.  We no longer undertake Issuer audits.


  • Real Estate Trust Accounts


An annual audit of the Trust Account is required to be provided to the Real Estate Authority.  We have discontinued undertaking these audits, however can refer you to other auditors who can provide these services.



       If your organisation's situation is not covered by the above please contact us.


Share by: