Independent Examination

When a full audit is not required an Independent Examination of your Annual Accounts will meet the requirements of Companies House, the Charity Commission and the Charities Act 1993. The Charities Act 2006 First Commencement Order has raised the Independent Examination threshold from £250,000 to £500,000 for accounting periods commencing on or after 27th February 2007.

In practical terms, this will affect you if your next financial year end falls in early 2008 and has made Independent Examinations available as an alternative to the full external audit to many more charities.

What is an Independent Examination?

The Independent Examination involves a review of the accounting records kept by a charity and a comparison of the accounts presented with those records. It also involves a review of the accounts and consideration of any unusual items or disclosures identified.

How does this differ from an audit?

The thorough review of an Independent Examination is not as intensive as a full audit. This therefore means that they can be completed quicker and are more cost effective. Many charity Trustee boards still prefer a full external audit and you will need to check your governing articles to make sure that any specific requirements are adhered to. Otherwise, the increase of this threshold now provides an alternative for many charities which is worth investigating.

How can Charity Business help?

Our team of professional accountants can fulfil your entire year end requirements from the production of statutory annual accounts to the full Independent Examination. All of our Independent Examiners are members of Association of Charity Independent Examiners (ACIE). Once finalised, we can then support presentation to the AGM as well as senior management, and can complete the cycle by filing all relevant documents with Companies House and the Charities Commission if required.