Audit of Incorporated Associations

Incorporated associations – including sporting clubs, community groups, charities and other not-for-profit bodies registered under state associations incorporation legislation – are often required to have their financial accounts audited or reviewed each year, depending on their size and the requirements of their constitution or governing legislation. We provide independent audits and reviews for incorporated associations across Melbourne.

Do Incorporated Associations Need an Audit?

Whether an audit is required depends on your association’s revenue and asset levels under the relevant state legislation, as well as any specific requirements in your constitution or from funding bodies. Smaller associations may only require a review rather than a full audit – we help you work out exactly what’s required for your association’s size and circumstances.

Audit vs Review for Incorporated Associations

An audit involves detailed testing of transactions, records and internal controls to provide a higher level of assurance, while a review offers a more limited level of assurance based mainly on inquiry and analytical review. Reviews are generally faster and less costly, and many smaller associations only need this lower level of assurance unless their constitution specifies otherwise.

What We Check During an Incorporated Association Audit

• Bank reconciliations and cash handling procedures
• Income and expenditure records, including membership fees, grants and fundraising income
• Committee meeting minutes for financial decisions and approvals
• Compliance with the association’s constitution and relevant state legislation
• Financial statement accuracy and presentation

Records to Prepare for Your Audit

Having your bank statements, financial statements, committee minutes, grant agreements and membership records organised ahead of time makes the audit process considerably faster and less disruptive to your committee’s time. We provide a clear checklist so nothing is missed.

Working With Volunteer Committees

We understand that many incorporated associations are run by volunteer committees without dedicated finance staff, and we work with that reality – explaining findings clearly, flagging any control weaknesses constructively, and helping the committee understand what’s needed for next year’s audit to go smoothly.

Frequently Asked Questions

Does every incorporated association need a full audit?

Not necessarily – requirements depend on your association’s revenue and asset thresholds under state legislation, and what your constitution requires. Many smaller associations only need a review.

Who is responsible for arranging the audit?

The management committee is typically responsible for engaging an independent auditor, often with the appointment confirmed at the annual general meeting.

What records do we need to have ready?

Bank statements and reconciliations, financial statements, committee meeting minutes, grant agreements, and membership and fundraising income records.

What happens if the audit finds an issue with our records?

We discuss any issues with the committee as they come up rather than only in a final report, and provide constructive recommendations for improving financial controls where needed.

How long does an incorporated association audit take?

Timing depends on the size of the association and how organised the records are – well-prepared records generally mean a faster turnaround.

How much does an audit or review cost?

Cost depends on your association’s size and complexity. We agree a fixed fee upfront so your committee can budget accordingly.

Related Audit & Compliance Services

Alongside incorporated association audits, we also provide not-for-profit organisation audits, body corporate manager audits, and rental trust account audits for real estate agencies, so if your committee is also involved with another entity type needing an annual audit, we can look after all of them together.

The audit requirements, checklist of documents needed, and overall cost for an incorporated association depend on your association’s revenue and asset levels under the relevant state legislation – we confirm exactly what’s required for your specific association before quoting.