Audit or Review Guidance
Legislated requirement for an audit or review
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.
Requirements for an audit and review were introduced for reporting periods ending 31 March 2016 onwards.
- Legislation requires you to have an audit if your annual expenditure is greater than $1,000,000.
- Legislation requires you to have a review (or an audit) if your annual expenditure is >$500,000.
Many registered charities have founding documents that require either an audit or review as part of their governance processes.
You have a requirement for these financial statements to be audited.
- Incorporated Societies (who are not charities)
There is no legislated requirement to have an audit or review. However 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.
Other situations may exist where an audit is required, normally to confirm compliance with specific requirements, including:
- Ministry of Education (MoE) Audits
Verification of the funding received from the MoE and how it was spent as required by the Education Act.
- Real Estate Trust Account Audits
Real estate trust accounts must be audited three times per year and auditors of these trust accounts have specific duties as required by the Real Estate Agents Act 2008 and the Audit Real Estate Agents (Audit) Regulations 2009.
If your organisation's situation is not covered by the above please contact us.