From the 1 April 2008 all charities (company and non-company) where their income falls below the threshold where an audit is required by law, may opt for an independent examination instead of an audit. This followed a change in company law brought in by the Companies Act 2006 which extended the independent examination option to company charities for the first time. The guidance on independent examination is found in two publications:

• Independent Examination of Charity Accounts - Trustees' Guide (CC31) sets out what an independent examination is and advises trustees on how to go about selecting their examiner.
• Independent Examination of Charity Accounts - Examiners' Guide (CC32) sets out what an independent examination is, who can undertake one, the Directions the examiner must follow and their whistle blowing responsibilities. It includes sample independent examination reports and advice for examining charities dual registered with the Office of the Scottish Charity Regulator.

A pro forma Independent Examiner's report is included in the packs CC16, CC17 and CC39

More information

Further advice on independent examination may be obtained from the Association of Charity Independent Examiners at www.acie.org.uk

The Auditing Practices Board (APB) publishes guidance on the application of auditing standards to charities and includes the APB Statement of Standards for Reporting Accountants Applicable to Small Charitable Companies:

• Practice Note 11 - Audit of Charities in the United Kingdom (PDF 630kb)