skip to navigationskip to main content

Brighton Office: 01273 202311

Wimbledon Office: 020 8946 1212

Independent Examination for Charities 

All registered charities must produce an annual report and accounts each year. However, when a charity’s annual income exceeds £25,000, an audit or independent examination is also required. Independent examination of accounts can be seen as an alternative to the more rigorous and extensive audit.

It is the responsibility of the trustees to appoint a suitably qualified accountancy firm to carry out an audit or independent examination of the accounts. This ensures that the charity’s supporters, beneficiaries and members of the public have assurance that appropriate accounting records have been kept. 

Full Audit or Independent Examination of the Accounts?

Under certain circumstances, an alternative to an audit is an independent examination, where minimal external scrutiny is required. Broadly speaking, an independent examination is for charities whose gross income is between £25,000 and £1 million. If the charity’s gross income exceeds £250,000 then gross assets (fixed assets plus current assets) must be valued at £3.26 million or less.

Many trustees opt for an independent examination – where possible – because it is simpler and costs less than an extensive audit. However, trustees will not be able to choose an independent examination if the charity’s governing document, a funder or the Charity Commission requires an audit to be carried out. 

As experts in charity and not-for-profit accounting, we offer a range of services including independent examination of accounts.  

Next Step: Call our Independent Examination Specialists

To discuss our independent examination services, please call us today. Alternatively, book a free initial consultation with one of our charity accounting and audit experts.