Auditing and Assurance for Larger Registered Charities

The Ministry is seeking submissions on tentative proposals to require registered charities with annual operating expenditure of $200,000 or more to have their financial statements independently assured.

Cabinet has asked the Minister of Commerce to report on the possible need for audit and assurance for financial statements prepared by larger registered charities by 30 September 2012. The purpose of this discussion paper is to obtain information that will contribute to the Minister providing sound advice to Cabinet. In the context of general purpose financial reporting, assurance (i.e. an audit or review) is an engagement in which an auditor or other assurance provider expresses a conclusion about whether a set of financial statements complies with generally accepted accounting practice (GAAP). The purpose of assurance is to provide greater confidence to users that the financial statements can be used for decision-making purposes, evaluating the financial performance and position of the reporting entity and making comparisons between reporting entities.

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