A UK company which is not a charity may qualify for an audit exemption if it has at least two of the following:

  • An annual turnover of no more than £6.5 million.

  • Assets worth no more than £3.26 million.

  • 50 or fewer employees on average.

An organisation which is not required by law to have an audit may choose to do so if the financial governance benefits are deemed to be proportionate to the cost. Some funders require the organisations they fund to have audits.

An internal audit is a service that is contracted at a board’s discretion to review internal controls, financial procedures and operational processes; identifying improvements in risk mitigation and ensuring value for money. An internal audit may also be called upon to undertake fraud and corruption investigations. It is invariably the preserve of the largest arts institutions and is very rarely found in small and medium-sized organisations.

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