Charity law is changing. Click here to find out how the changes will affect your charity.
Print This Page
Print This Page

External scrutiny

All charities must have their accounts externally scrutinised each year. Someone who is independent of the charity must review the accounts and produce a report, attached to the accounts, that highlights any issues to the reader.

The type of external scrutiny you choose depends on your charity’s governing document, gross income and net assets and whether or not your charity is also a company.

There are two recognised forms of external scrutiny:

  • Audit
  • Independent examination

What type of external scrutiny should my charity choose?

Please select yes or no to the following questions to find out what type of external scrutiny is best for your charity.

Is an audit required by the governing document, another enactment, a funder, or for any other reason?

Yes
No

Audit by a registered auditor

Based on your answers, you should have your accounts audited by a registered auditor.

Is the charity's gross income for the financial year £500,000 or more?

Yes
No

Do gross assets at the year-end exceed £3,260,000?

Yes
No

Have accrued accounts been prepared?

Yes
No

Have the trustees chosen to have the charity’s accounts audited?

Yes
No

Does the charity prepare fully accrued accounts?

Yes
No

Independent examination by a member of a listed professional body

Your charity should choose independent examination by a member of a listed professional body.

Independent examination by an appropriate person

Your charity should choose independent examination by an appropriate person.

Independent examination guidance

Having your charity’s accounts independently examined is an important part of charity regulation. Independent examination makes sure that charities are reporting transparently, and are accountable to the public.

It can also help to show that your charity is being run properly.
Reading this guidance will help you to understand:

  • What type of external scrutiny is best suited to your charity
  • What independent examination involves
  • How to select an independent examiner for your charity
  • What you need to do to prepare for an independent examination
  • What responsibilities and duties independent examiners have

In addition to the guidance for charity trustees and staff, we have also produced guidance specifically for people acting as independent examiners.

Scroll to top