The Chartered Institute of Accountants of Scotland (ICAS) has called for the Scottish Government to raise the £500,000 charity law audit threshold "as a matter of urgency".
In an open letter to Charley-Anne Somerville MSP, cabinet secretary for social justice, ICAS said the threshold means some Scottish charities may not be able to find an auditor for their statutory audit.
Regulatory changes to the audit environment have also increased audit fees and demand for audit skills in a tight labour market, ICAS said.
Scottish charities must arrange an audit when they have a gross income of £500,000 or more, unchanged since 2016. Companies, on the other hand, only need an audit when they have a turnover of more than £10.2 million in a financial year.
Bruce Cartwright, ICAS chief executive, said:
"Increases to the company law audit threshold over many years has caused a fall in the number of accountancy firms being registered to undertake audit work.
"This continuing trend means there are fewer auditors available to take on audits, of not just companies, but other kinds of organisations, such as charities.
"To assist with this problem, the Scottish government should urgently review the charity audit threshold."
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