The Regulator for Charities in England and Wales
Independent Examination is a form of external scrutiny of accounts specifically designed for charities. It offers a lower cost option for the 95 per cent of charities whose income and assets fall below the statutory audit threshold (see 'The Reporting and Accounting Framework for Charities' on our website).
New guidance was published earlier this year that addressed the changes introduced by the Charities Act 2006 for financial year starting on or after 1 April 2008, in particular, the independent examination of small company charities.
The decision whether or not to opt for independent examination instead of an audit and the choice of an independent examiner are important ones for trustees. To help trustees understand what an independent examination involves and what steps they can take to ensure an efficient and effective examination we have now produced separate guidance aimed specifically at trustees.
We now provide separate comprehensive guidance for independent examiners. The guidance is designed to provide all the information an independent examiner needs to know in order to conduct a competent examination including the directions made by the Commission, which must be followed. In addition, there is helpful guidance on a range of issues including suggested examination procedures, examiners' reports and on reporting matters of material significance to us.
This guidance applies to all examination for financial years starting on or after 1 April 2008.
CC31 – Independent Examination of Charity Accounts: Trustees' Guide
CC32 - Independent Examination of Charity Accounts: Examiners' Guide