4.7.1. Reviewing & Auditing of Financial Statements

Small Charity
For small charities, it is optional to submit a financial report in the Annual Information Statement, and there is no requirement under the ACNC to have the financial report reviewed or audited.

• However, we encourage small charities to submit a financial report as part of their Annual Information Statement.
• If a small charity’s governing document requires the submission of financial statements, this requirement must still be met.
• Importantly, Surf Life Saving Queensland (SLSQ) strongly encourages all affiliated small charities to have their financials independently audited or reviewed where possible, to promote transparency, accountability, and community confidence in financial stewardship.
  

Medium charity
Medium-sized charities must have their financial report either reviewed or audited. The reviewer’s or auditor’s report must be submitted as part of the financial report in the Annual Information Statement.
The audit or review must be conducted by:

• a registered company auditor (as defined by the Corporations Act 2001)
• an audit firm, or
• an authorised audit company.
  

A review may also be conducted by a current member of a relevant professional body (CPA, CAANZ or IPA) who is qualified to undertake a review (in line with the Corporations Act 2001).

Large charity
Large charities must have their financial report audited. The auditor’s report must be submitted as part of the financial report in the Annual Information Statement.
The audit must be conducted by:

• a registered company auditor (as defined by the Corporations Act 2001)
• an audit firm, or
• an authorised audit company.
  

Note that these are the ACNC’s requirements for financial reports. There may be specific requirements for financial reports from other regulators, agencies or even a charity’s own governing document. It is important to consider other requirements when preparing a charity’s financial report.

LINK: Reviewing and auditing of financial reports | ACNC

Charity size
A charity can be classified as small, medium or large, with a charity’s size based on its annual revenue for the reporting period.
LINK: Charity size | ACNC