The Charity Commission has published new guidance that reminds charity auditors of their duties to report matters of material significance to the Charity Commission or the Office of the Scottish Charity Regulator.
The commission and the OSCR have issued a list of matters that, because of their “nature or potential financial impact” are “likely to require evaluation and, where appropriate, investigation by the regulator”. These include cases of fraud, money laundering, misappropriation of funds, support of terrorism, abuse of beneficiaries and persistent breaches of charity law.
The guidance reads: “The sooner the charity regulators are made aware of a matter, the sooner it can be considered and, where appropriate, regulatory action taken to protect a charity, its beneficiaries and its charitable assets.”
The commission will also be producing revised guidance on the similar duties of independent examiners in May.
Auditors already had such duties under the 1993 Charities Act, but they have been updated in the 2006 Act and the Trustee Investment (Scotland) Act 2005.