As a result, 93% of Scotland’s 24,500 charities will not need an audit once new regulations are passed by the Scottish parliament, reducing administrative burden and costs, and helping smaller charities which were struggling to even find an audit firm prepared to take on their audit business.

The move comes after criticism from charities about rising costs and the limited availability of specialist charity auditors, which was making it extremely hard to comply with the low audit threshold.

Social justice secretary Shirley-Anne Somerville said: ‘It’s important that charity regulation not only meets the needs of charities, but is fair and works well.

‘We recognise the real financial pressures on charities particularly the challenges they face as a result of the UK government’s increase to employers’ national insurance contributions.

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