Independent examination · Trustee guide
What is an independent examination of charity accounts?
An independent examination is an external review of a charity's accounts under charity law. An eligible examiner considers specified matters about the financial records and accounts, then reports to the trustees. It can be a suitable form of external scrutiny for charities that meet the relevant conditions. For a new trustee, the useful starting point is understanding what the examination is intended to achieve and who remains responsible for each part of the annual reporting process.
What the examiner considers
The examiner follows the Charity Commission's mandatory directions. These cover understanding the charity, considering its records, comparing those records with the accounts, reviewing the accounting presentation and pursuing significant questions. The work responds to the charity's circumstances; an unexplained movement or unusual transaction can require further enquiries. The report therefore follows an examination, rather than being a signature purchased after the accounts have been assembled. Charity Commission: directions for independent examiners, CC32
What trustees still need to do
Trustees retain responsibility for their accounts and annual report, even when an accountant helps prepare them. They should understand the final documents before approving them. Charity Commission: guidance for trustees, CC31
The trustees' report explains the charity's purposes, activities and achievements alongside its financial position. Consider whether a reader unfamiliar with the organisation could understand the year's work from the report. An account balance alone does not explain whom a project helped or why a programme changed. Prepare a charity trustees' annual report
What the report means
The examiner reports their conclusions on the matters covered by the statutory examination. Read the wording alongside the accounts: a report can identify concerns requiring attention. The absence of a reported concern should not be described as a guarantee that every transaction is correct or that every possible problem has been found.
An examiner also has a separate duty to report matters of material significance to the relevant charity regulator. Trustees should understand this responsibility at the outset. Reporting matters of material significance
How to choose an examiner
Ask about experience with charities of your structure and complexity, the intended approach and the professional services covered by the person's licence. AAT treats independent examination as a distinct licensed service. An AAT licence permits only the services individually approved; it does not itself authorise statutory audit. AAT licences and services
A useful introductory conversation should leave you knowing who will carry out the work, what information is needed and how questions will be handled.
Your next step
Establish whether examination is appropriate for your charity's year end before booking the work. Then identify a trustee contact and discuss the accounts' readiness. Request an initial eligibility review with Delakazzi Accountants, providing your charity's name, structure, financial year end and broad income. Acceptance remains subject to suitability and independence checks. Send sensitive records only through the secure method agreed for your engagement.
Apply this guidance to the right facts
This is general information, not advice or a completed eligibility assessment. Scotland and Northern Ireland have separate requirements. Check the relevant law, regulator, governing document, funding terms and accounting period before making a decision.
Any engagement and its scope must be agreed separately.