As well as preparing accounts that meet required reporting standards, for those organisations who do not require a full statutory audit we can carry out an independent examination. Our specially trained accountants ensure that trustees are kept up to date about the financial and administrative benefits that their legal entity is entitled to. Whether a major organisation with substantial assets or a small volunteer-managed
community group, our team makes sure you are equipped with the knowledge and confidence you need to face both challenges and opportunities.
- a 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
the trustees must also arrange for an independent person or accountancy firm to carry out either an audit or an independent examination of their charity’s accounts. The purpose of this is to give the charity’s trustees, supporters, beneficiaries and the wider public, some independent assurance that the charity’s money has been properly accounted for and accounting records kept. The trustees of most charities are able to choose to have an independent examination instead of an audit. Independent examination is a ‘light touch’ scrutiny involving the examiner checking for specific matters only. Because it is narrowly defined and does not involve forming an opinion as to whether the accounts are ‘true and fair’, it usually costs less than an audit.
The Institute of Chartered Accountants In England and Wales has produced a guide that explains the differences between audit and independent examination Choice between audit and independent examination (ICAEW)
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.