An independent examination is a simpler form of scrutiny than an audit for small charities to give the trustees, funders, beneficiaries, stakeholders and the public, some independent assurance that the charity’s money has been properly accounted for and accounting records kept. ​
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How it works
The examiner reviews the charity's accounting records and annual accounts and then reports to the trustees on whether they have reasonable cause to believe that proper accounting records were not kept, or if the accounts do not match the accounting records.

When it's appropriate

​Independent examinations are often appropriate for smaller charities. Independent examinations are required for charities with a gross income over £250,000, or if the income is between £25,000 and £1,000,000. If your income is under £25,000, the Charity Commission does not usually require audit or independent examination of charity's annual accounts. For charities with income over £250,000- £1m, you need an independent examiner who must be a member of one of the accountancy bodies listed in the Charities Act. You will need a full audit if you have income over £1 million or gross assets over £3.26 million. ​

 

Difference between Independent Examination and Audit

Audit

A registered auditor forms an opinion on a charity's financial statements, including whether they are accurate and prepared in accordance with accounting standards. Audits are more expensive than independent examinations and provide a positive assurance that the accounts are correct.

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Independent Examination

Independent examinations are less stringent than audits, focusing on reviewing the accounts with the assumption that the underlying records are accurate. The examiner provides negative assurance, indicating that no evidence was found to suggest the accounts are inaccurate.

Why Choose Us?​

​With extensive experience in charity finance and membership with the recognized accounting body, ACCA, we are well-equipped to support your charity by conducting external examination services. This helps reassure your trustees, funders, stakeholders, service users, and the public that your records are well maintained in compliance with Charity Commission regulations.

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