Reports of Charity Commission accounts monitoring reviews.
In 2017, 80 charities filed accounts with a modified audit opinion, meaning that their accounts are, or may be, materially misstated. This is 17 fewer than in 2016. The main reasons why auditors issued modified audit opinions continued to be inadequate accounting records and not following accounting requirements. The main accounting requirements not met concerned the valuations of properties, investments and recognition of pension liabilities. Most of the charities that submitted accounts with a modified audit opinion in 2016 had addressed their auditor’s concerns in their following year’s accounts.
