Examination or audit: which applies?
Whether your charity needs an independent examination or a full statutory audit depends on its income and your governing document. Many small and medium charities qualify for the lighter-touch independent examination. It's worth confirming your specific position rather than assuming.
What an independent examiner actually checks
An independent examination is a review of the charity's accounting records and a comparison against the accounts, to confirm they're consistent and that no obvious matters have come to light. It's less detailed than a full audit, but still a genuine check.
What trustees should prepare in advance
Bank statements and reconciliations, a record of income and expenditure, minutes of trustee meetings, and details of any restricted funds all help the examination run smoothly. Gathering these before the examiner asks saves time on both sides.
Common issues that slow examinations down
Missing bank reconciliations, unclear treatment of restricted funds, and gaps in trustee meeting records are the most frequent causes of delay. Addressing these throughout the year, not just before the deadline, makes year-end far less stressful.
Getting the right support
Working with an examiner who understands charity accounting—not just general business accounts—makes the process smoother for trustees and staff. It helps ensure your reporting holds up to scrutiny from funders and the Charity Commission.
