Audit vs Review: What’s Right for Your Charity or Association?

Many small charities ask whether a review is enough or if a full audit is required — this guide explains the key differences and when each applies.

If you’re on a committee, one of the most common questions is whether you need a full audit or if a review will be enough.

It’s a fair question — and getting it wrong can mean unnecessary cost, or worse, not meeting your reporting obligations.

The right answer depends on your size, your requirements, and what level of assurance your members or stakeholders expect.

What’s the Difference Between an Audit and a Review?

A full audit provides a high level of assurance, where detailed testing is performed and an opinion is issued on whether the financial statements give a true and fair view.

A review provides a lower level of assurance, based mainly on enquiries and analytical procedures rather than detailed testing.

In simple terms:

• Audit = more work, higher assurance

• Review = less work, more cost-effective

This difference comes down to the level of assurance provided — audits give reasonable assurance, while reviews provide limited assurance.

When Is a Review the Better Option?

For many small charities and community organisations, a review is often the most practical choice.

Lower Cost

Because a review involves fewer procedures, it is generally more affordable than a full audit — which is important for organisations working within tight budgets.

Faster Turnaround

Reviews are typically completed more quickly, helping you meet reporting deadlines without unnecessary delay.

Still Provides Independent Assurance

A review still gives your members and stakeholders confidence that the financial statements are reasonable, even though it does not involve the same depth of testing as an audit.

Suitable for Smaller Organisations

Many incorporated associations are not required to have a full audit.

Depending on your size, you may only need a review or verification of your financial statements under relevant legislation.

When Is an Audit Required?

A full audit may be necessary if:

• Your organisation exceeds certain revenue or asset thresholds

• A funding body or regulator requires it

In these cases, a review would not be sufficient.

So, Which One Should You Choose?

There’s no one-size-fits-all answer.

The right choice depends on:

• Your legal obligations

• The size and complexity of your organisation

• The expectations of your members, board, or stakeholders

For many small associations, a review provides the right balance between cost, timing, and assurance.

Choosing between an audit and a review isn’t just about compliance — it’s about making the right decision for your organisation.

Getting clear advice early can save time, reduce cost, and avoid unnecessary stress at year-end.

If you’re unsure which option is right for your association, it’s worth having that conversation before your reporting process begins.