Some organisations do not require a full statutory audit. Instead, we can carry out an independent examination as well as preparing accounts that meet required reporting standards.
Our specially-trained accountants ensure that trustees are kept up-to-date about the benefits that their legal entity is entitled to. We deal with major organisations with substantial assets, and small volunteer-managed community groups. Our team makes sure you are equipped with the knowledge and confidence you need to face all challenges and opportunities.
When you need an independent examination
The following criteria are used to determine if your organisation requires an independent examination:
- your charity’s annual income is over £25,000 but not more than £1 million, and
- its gross assets (fixed assets plus current assets) are £3.26 million or less.
Your trustees must arrange for an independent person or accountancy firm to carry out an audit or examination of their accounts.
Assurance and Accountability
The purpose is to give your charity’s trustees, supporters, beneficiaries and the wider public some independent assurance that your charity’s money has been properly accounted for and records kept.
The trustees of most charities are able to choose to have an independent examination instead of an audit.
This type of examination is a ‘light touch’ scrutiny involving the examiner checking for specific matters only. This is because it is narrowly defined and doesn’t involve forming an opinion as to whether the accounts are ‘true and fair’. Therefore it usually costs less than an audit.
The differences to an audit
The Institute of Chartered Accountants In England and Wales has produced a guide that explains the differences between audit and independent examination.
Trustees should be aware that they cannot opt for an independent examination if the charity’s governing document, a funder or the Charity Commission requires an audit to be carried out.
When you get in touch with Josh Kingston, he will look at the requirements for your organisation closely. The will then advise you accordingly, ensuring that you are obtaining the precise services appropriate to your needs.