What Is an Independent Examination?

An independent examination is a review of a charity’s accounts carried out by a qualified professional who is independent of the organisation.

The purpose is to confirm that:

• • Proper accounting records have been maintained.
  • The accounts are consistent with those records.
  • The financial statements follow applicable reporting standards.
  • No obvious issues have been identified that require further investigation.

The examiner provides a formal report that accompanies the charity’s annual accounts when they are submitted to the Charity Commission.

Does a Charity Need an Independent Examination?

Most charities with annual income above certain thresholds must have their accounts reviewed by an independent examiner or audited.

In general:

• • Charities with income between £25,000 and £1 million normally require an independent examination.
  • Charities above the audit threshold may require a statutory audit depending on their income and asset levels.

Independent examination offers a proportionate form of external review for many charities.

Our Independent Examination Services Include

We carry out examinations carefully and professionally while maintaining independence from the charity’s financial management.

Review of Accounting Records

We review the charity’s financial records to ensure that appropriate documentation supports the accounts. This includes examining key accounting records and financial documentation.

Examination of Annual Accounts

We review the charity’s annual financial statements to confirm that they:

• • Are consistent with the underlying accounting records.
  • Follow relevant reporting requirements.
  • Provide a clear representation of financial activity

Compliance With Charity Reporting Standards

Where charities prepare accrual based accounts, we ensure they are aligned with the Charities SORP reporting framework.

This ensures the accounts meet accepted reporting standards used across the charity sector.

Independent Examiner’s Report

Following completion of the review, we prepare the formal independent examiner’s report. This report is included in the charity’s annual report and accounts before submission to the Charity Commission.

Supporting Trustees With Financial Oversight

Trustees are responsible for ensuring that their charity maintains proper financial records and prepares accurate annual accounts.

An independent examination provides reassurance that financial statements appear reliable and that reporting responsibilities have been fulfilled.

This process strengthens transparency and supports good governance within the organisation.

Frequently Asked Questions

What is the purpose of an independent examination?

An independent examination provides a review of a charity’s financial records and annual accounts to confirm that they appear consistent and properly prepared.

Who can act as an independent examiner?

An independent examiner must be independent of the charity and have appropriate financial knowledge or professional qualifications to carry out the examination.

Is an independent examination the same as an audit?

No. An independent examination is a lighter review compared with a statutory audit. It focuses on identifying obvious issues rather than performing detailed testing.

Do all charities need an independent examination?

No. Very small charities with lower income may not require an independent examination. The requirement depends on the charity’s income level and structure.

When should the examination take place?

Independent examination normally takes place after the charity’s annual accounts have been prepared but before they are submitted to the Charity Commission.

Independent examination helps charities demonstrate that their financial reporting is credible and properly prepared.

With a structured and professional review process, trustees can submit their annual accounts with confidence while maintaining transparency for funders, regulators and the public.