Charity audit oversight needs overhaul

In light of the governance failures at the charity, Kids Company, the Charity Commission has been told to revise its guidance and make it clearer so that auditors fully understand their statutory reporting duties and report any concerns about unsustainable operating models or inappropriate fiscal reserves policies at charities they audit.

The Charity Commission is yet to respond to the recommendation from the Public Administration and Constitutional Affairs Committee (PACAC), which has published a report setting out recommendations for the government and the regulator.