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Updated: Sep 17, 2021

Boards of charities and Not-for-Profit (NFP) entities should assess if the annual financial statements are required to be reviewed or audited on an annual basis.


The Australian Charities and Not-for-Profits Commission sets the reporting guidelines for registered charities. The need for an audit vs a review is determined by the annual revenue of the organisation, not the structure.

The table below sets out the reporting requirement for particular revenue levels:

Once you have determined if an audit or review is required, you will also need to consider who is appropriately qualified to conduct the audit. For an audit, a registered company auditor is required to meet the requirements of the ACNC. See Reviewing and auditing of financial reports | Australian Charities and Not-for-profits Commission ( .

Rules for NFP Associations

A large majority of NFPs are associations - these entities are regulated by the Department of Mines, Industry Regulation and Safety who administer the Association Act 2015 which came into force on 1 July 2016.

The financial reporting requirements for associations are determined by a tiered system with the same revenue thresholds as the ACNC:

Similarly, consideration will be needed to understand who can undertake this review or audit. Under the Association Act an audit may be conducted by a member of Chartered Accountants Australia and New Zealand (CA or FCA), CPA Australia (CPA or FCPA) or Institute of Public Accountants (MIPA or FIPA); or a registered company auditor. See Tiered financial reporting | Department of Mines, Industry Regulation and Safety (

Other Considerations

There are other reasons why an organisation may require an audit. The most common reasons include but are not limited to:

  • The governing documents or constitution may stipulate that an audit is required.

  • For an association where the majority of the members at a general meeting passed a resolution that an audit is to be conducted.

  • The main funding body of the organisation, which is often a government department, requires an audit be conducted.

  • The entity may also be reporting to another agency or financial institution.




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