Frequently Asked Questions
This page answers the questions Queensland treasurers, presidents and committee members ask us most: whether you need an audit, a review or a verification, how the process works, why your auditor must stay independent, what records to prepare, and what happens at the AGM.
Most committee members don't volunteer because they enjoy bookkeeping. They volunteer to help their community, and then find themselves facing words like "verification", "limited assurance" and "representation letter". The answers below are written for them, in plain English.
The rules described here are Queensland's, under the Associations Incorporation Act 1981 (Qld), along with the national rules for ACNC-registered charities. We work with organisations across Australia online, but other states have their own Acts and thresholds.
Choosing the right level: audit, review or verification
What is the difference between an audit and a review?
An audit gives reasonable assurance. The auditor tests transactions, balances and documents, then gives a positive opinion that the financial statements are true and fair. A review gives limited assurance. The reviewer makes enquiries and analyses the figures, then reports that nothing has come to their attention to suggest the statements are wrong.
A review is less work, so it costs less. Both are independent, and both follow the same ethical rules. Our guide to audit versus review sets them side by side.
Does our Queensland association need an audit, a review or a verification?
It depends on your reporting level, which is set by your revenue and current assets for the year:
Small — revenue under $150,000 and current assets under $300,000.
Medium — not large, and revenue of $150,000 to $500,000 or current assets of $300,000 to $1 million.
Large — revenue over $500,000 or current assets over $1 million.
Large associations must be audited. Medium associations must have their statements verified by a certified accountant, a registered auditor or a person approved by the Office of Fair Trading. In practice, a verification is carried out as a review. An audit is needed instead if another law requires one (for example, if you have gaming machines) or if your members ask for one. Our guide to Queensland reporting levels explains each level, including what small associations must do.
Your level can change from year to year. A large grant or a growing term deposit can move you up a level without anyone noticing.
We are a registered charity. Do the ACNC rules apply instead?
ACNC-registered charities have their own size tests, based on annual revenue:
Small (under $500,000) — no review or audit required by the ACNC.
Medium ($500,000 to under $3 million) — financial report reviewed or audited.
Large ($3 million or more) — financial report audited.
Most Queensland associations that are also registered charities report to the ACNC instead of lodging an annual return with the Office of Fair Trading. They must still hold an AGM and follow the Queensland Act. Check your constitution and grant agreements too, because they can ask for more than the ACNC does.
Our constitution says the accounts must be "audited". Can we have a review instead?
In most cases, yes. Section 1D of the Associations Incorporation Act 1981 (Qld) allows a constitution that says "audit" to be read as allowing a verification or review where the law permits one. The level of assurance still has to match your reporting level. If in doubt, ask us before your AGM, or update the constitution so it matches the Act.
Our funder wants audited statements, but we only need a review. What do we do?
The funding agreement wins for that grant. Many grants require an audited acquittal, whatever your size. We can do a separate grant acquittal audit for that grant while your annual statements are reviewed. Tell us at the start which grants have an audit condition and when each is due.
How an audit or review works with us
How much does an audit or review cost?
We charge a fixed fee, agreed in writing before any work starts, so the committee can approve one known figure. Many reviews are completed for around $880 including GST, and most fall between $880 and $2,000. Audits are quoted individually. Our post on fixed fee audits explains how we price both.
How much does an audit or review cost?
We charge a fixed fee, agreed in writing before any work starts, so the committee can approve one known figure. Many reviews are completed for around $880 including GST, and most fall between $880 and $2,000. Audits are quoted individually. Our post on fixed fee audits explains how we price both.
How long does it take?
We complete most audits and reviews within two weeks of receiving complete records. The biggest cause of delay is records that aren't ready, such as unreconciled bank accounts, missing invoices or unsigned minutes. Our post on audit timing explains how to be ready well before your AGM.
Do we have to come to your office?
No. We work online with organisations throughout Queensland. You upload records through a secure Dropbox link, we raise questions by email, and reports and letters are signed electronically through Dropbox Sign. We work with Xero, MYOB, Excel and handwritten cashbooks.
What happens, step by step?
You send us a few details and we reply with a fixed-fee quote and an engagement letter, signed before work starts.
We send a short records checklist and a secure upload link.
We work through your records and email any questions.
The president and treasurer sign a representation letter confirming the records are complete.
We issue the audit or review report and, where we find something worth telling you, a management letter in plain language.
Who is allowed to audit or review our financial statements?
For a Queensland association, the auditor or verifier must be a certified accountant (a member of CA ANZ, CPA Australia or the Institute of Public Accountants) or a registered company auditor, unless the Office of Fair Trading approves someone else. They must also be independent. A committee member, a member's relative or the bookkeeper who prepared the accounts cannot do it. Our guide to how to tender for audit services walks a new treasurer through choosing one.
Independence
Why can't you do our BAS, payroll or bookkeeping as well?
Because we would then be checking our own work. The APES 110 Code of Ethics for Professional Accountants (including the Independence Standards) stops an auditor or reviewer from preparing the records, BAS, tax returns or payroll they then check, for the same period.
This isn't about trust. It protects your committee, because your statements are checked by someone who had no hand in preparing them. If you need help with your records, we can introduce you to specialist not-for-profit bookkeepers who work separately from us.
Our previous auditor did our BAS and tax return. Why can't you?
The same rule applies to every auditor and reviewer. If your previous auditor prepared returns for a year they also audited, that was a conflict the standards are designed to prevent. We understand it can feel like a step backwards, but separating the two jobs is what makes the report worth relying on.
Records, timing and what you receive
What documents do we need to prepare?
Usually:
bank statements for every account, including term deposits and card accounts (PDF)
your Xero or MYOB file, or your spreadsheet or cashbook
the draft financial statements, if you have them
last year's audited or reviewed statements
committee and general meeting minutes for the year
invoices and receipts for payments
grant agreements and acquittal forms
BAS and payroll records, if you are registered for GST or have staff
your asset register
Having these ready at the start is the single biggest thing you can do to speed things up. Our guide to what financial records an association must keep explains what good records look like, and our free cashbook template helps if you don't use accounting software.
Why does the auditor need our minutes? Are they kept confidential?
Minutes show what the committee approved: payments, grants, asset purchases and disposals, and any related-party decisions. They are often the only evidence that a payment was authorised. We keep everything you send confidential, under APES 110 and the Privacy Act 1988 (Cth). Our post on access to records, confidentiality and the Privacy Act explains how.
What is a representation letter, and why do we sign it?
It is a short letter, signed by the president and treasurer near the end, confirming that you have given us all the records and told us about anything important. The auditing and review standards require it before the report can be signed. Our post on representation letters explains what you are confirming.
We received a management letter. Does it mean we failed?
No. A management letter lists weaknesses we noticed and suggests simple fixes, such as reconciling the bank monthly or minuting asset disposals. Most organisations receive one at some point. Our guide to management letters explains how to read it and respond.
What is the difference between a qualified and an unqualified report?
An unqualified report means nothing material was found. A qualified report means there is an issue the reader should know about, such as cash takings that couldn't be checked. Whether an issue is big enough is a matter of materiality and professional judgement. We always explain any qualification before the report is issued.
AGMs, lodgement and catching up
When do the financial statements need to be presented?
A Queensland association must hold its AGM within six months after the end of its financial year, and present the audited or verified statements at that meeting. The annual return is then lodged with the Office of Fair Trading within one month after the AGM, unless you report to the ACNC instead. Book your auditor at least two months before the AGM. If you're not sure when your year ends, see what is my financial year end.
We haven't had an audit or review for several years. Can you help?
Yes, and you are far from alone. The order of work is the same every time: reconcile the bank accounts for each missing year, prepare a set of statements for each year, then have all the missing years reviewed or audited together by one independent practitioner. Our unaudited financial statements page explains the errors we usually find first and how we price catch-up work.
Our auditor mentioned "going concern". Should we be worried?
Not necessarily. Going concern is the assumption that the organisation will keep operating for at least the next twelve months. An auditor asks about it when there are signs of financial strain, such as tax debts or several years of losses. It is a question, not an accusation. Our plain-English guide to going concern, ATO debts and insolvency explains what it means.
What do we have to disclose about payments to committee members?
Queensland associations must disclose remuneration and other benefits paid to committee members and senior staff, and certain related-party transactions, to members at the AGM. Our post on related party transactions and remuneration disclosure explains what to include.
Trust accounts and grant acquittals
Do you audit real estate trust accounts?
Yes. We audit existing trust accounts of Queensland real estate agencies under the Agents Financial Administration Act 2014 (Qld), including the two unannounced examinations each year. Fees start at $1,850 including GST, and the report is issued within 10 business days of complete records. We cannot set up or reconcile the trust account for you. See real estate trust account audits.
What is a grant acquittal audit?
It is an independent audit of how a single grant was spent, against the terms of the funding agreement. Funders often require one even when your annual statements are only reviewed. Standalone acquittal audits start from $1,100 including GST. See grant acquittal audits.
