Audit, Review or Examination of Financial Reports
Audit, Review or Examination of Financial Reports
The Statute requires the Parish to appoint an Auditor, Reviewer or Examiner, depending upon the gross income of the Parish. Please note that the gross income is not the total of Ordinary Income and Commercial Income and is used in its ordinary meaning of total income before deduction as determined in accordance with usual accounting practices.
Under Section 65.1 of the Statute the Parish determines the requirements as follows:
Every parish whose "gross income":
- exceeds $1,000,000 must appoint an Auditor;
- exceeds $250,000 but does not exceed $1,000,000, must appoint either an Auditor or a Reviewer, at the direction of parish council and subject to the discretion of parish council; and
- is less than $250,000, must appoint an Independent Examiner.
The Parish Auditor, Reviewer or Examiner are appointed at the annual general meeting of parishioners.
- An Auditor must be an individual who is qualified to conduct audits e.g. a Registered Company Auditor under the Corporations Act.
- A Reviewer, whilst not necessarily being a qualified Auditor, still needs to be appropriately qualified to conduct the work.
- Independent Examiners require the approval of the Diocesan Secretary prior to appointment. This approval can be applied for on the approved form that is submitted to Diocesan Office. An Independent Examiner must have appropriate experience in book-keeping or accounting and relevant qualifications.
The Auditor, Reviewer or Examiner cannot be a member of the Parish Council or anyone who has been found guilty of a criminal offence (anyone on the ASIC Banned or Disqualified Register). Anyone holding any paid position of the parish or lay person being under contract to perform any work for the parish is ineligible to hold the position of Auditor, Reviewer or Examiner.
It is the duty of the Auditor, Reviewer or Examiner to:
- Audit, review or examine (as appropriate) the annual accounts and report to the annual meeting, where it is conducted by an Auditor or Examiner, in accordance with Australian Auditing Standards made by the Auditing and Assurance Standards Board; and
- report to Diocesan Council and to the annual meeting anything that the Auditor considers to be irregular or illegal.
As soon as the books for the year have been closed, the Treasurer will need to send or take to the auditor all the papers that will be needed in order to carry out the audit. This will include:
When the Auditor, Reviewer or Examiner is satisfied that the accounts are correct and complete, and in accordance with the vouchers and receipts examined, he or she will sign an audit report. Auditors are independent and free to carry out whatever audit procedures they deem necessary in each Parish’s circumstances.
The Audited, Reviewed or Examined accounts are then presented to the annual meeting of parishioners. The Parish Council will have seen copies of these accounts and should have discussed them and their implications with the Treasurer at a meeting between the end of the financial year and the public presentation of the accounts. The Parish Council should formally adopt the accounts for presentation to the annual general meeting.
Any weaknesses in the Parish's system of accounting and internal controls which came to the Auditor’s, Reviewer’s or Examiner’s notice in the course of the audit together with the auditor's recommendations for improvements should be included in a letter to the Parish Council.
Any irregularities should be reported to the Diocesan Council and the Annual Meeting.