What an independent examination is
An independent examination is a form of external scrutiny of a charity's accounts. It is less detailed than an audit. The examiner reviews the accounting records and accounts, follows the Charity Commission's directions, and reports on whether anything has come to their attention that should be drawn to the reader's notice, such as records not being kept properly or accounts not matching them. It is not an audit opinion that the accounts give a true and fair view.
Whether your charity needs an independent examination, an audit or neither depends mainly on its income and, in some cases, its assets, as well as anything your governing document or funders require. The Charity Commission has announced changes to the financial thresholds for charity accounts, with current guidance stating which figures apply to which financial years. We check the requirement that applies to your year end rather than relying on old limits.
Who can be the examiner
An examiner must be independent of the charity and have the ability and practical experience to carry out a competent examination. For larger charities, and for some charities preparing accruals accounts, the examiner must also be a member of one of the professional bodies listed in charity law. Your examination will be carried out by an examiner who meets the requirements for your charity's income level. We do not offer statutory audits; if your charity has moved into audit territory, we will tell you and you will need a registered auditor.
The Charity Commission's guidance on independent examination for trustees sets out the rules in more detail.
How an examination works
- Confirm the requirement. We check your income, the accounts basis and your governing document.
- Engagement. Trustees appoint the examiner and agree the scope and timetable.
- Review of records. The examiner compares the accounts with the records, reviews bank reconciliations, tests a sample of income and spending, and looks at restricted funds, trustee payments and related party transactions.
- Questions. Any queries are raised with the treasurer and resolved.
- Report. The examiner signs the independent examiner's report, which is filed with your accounts where required.
Keeping roles separate
Independence matters. If our team prepares your charity accounts, we explain how preparation and examination are kept separate, and whether that arrangement is suitable for your charity under the rules. Some trustees prefer a different firm for each role, and we are happy to work alongside them.
Getting ready for the examiner
Have your draft accounts, bank statements for every account, invoices and receipts, grant letters, Gift Aid records, trustee meeting minutes and last year's examined accounts to hand. Tidy records make the examination quicker. If they are not in good shape, our bookkeeping service can help first.
Independent examination for Kent charities
We support community groups, churches, schools' parent associations and local charities across Kent, often working with volunteer treasurers. Social enterprises structured as companies may find our CIC accounts service a better fit. Get in touch with your year end and approximate income, and we will confirm what you need.
Frequently asked questions
Is an independent examination the same as an audit?
No. An audit is a more detailed engagement that results in an opinion on whether the accounts give a true and fair view. An independent examination is a review that reports whether any matters have come to the examiner's attention. It is generally quicker and less costly. We do not carry out statutory audits.
How do we know if our charity needs an examination?
It depends mainly on your charity's income and sometimes its assets for the financial year, plus any requirement in your governing document or from funders. Thresholds are set by charity law and the Charity Commission has updated them for more recent years, so we check the rules for your specific year end.
Can the treasurer's friend act as examiner?
The examiner must be independent of the charity, so a trustee, a close relative or business partner of a trustee, or someone closely connected with the administration would not normally be suitable. They must also have the right skills and, at higher income levels, professional membership. If in doubt, check the guidance before appointing.
What happens if the examiner finds a problem?
The examiner discusses it with the trustees first, and many issues are resolved by correcting the accounts. If significant matters remain, they are mentioned in the examiner's report. In some serious situations examiners have a duty to report matters to the Charity Commission. Good records and open communication make problems far less likely.
Charity Independent Examination across Kent
We help clients throughout the county, including: