Independent Examination

Understanding Charity Independent Examination

Charity independent examination is a vital process for ensuring transparency and accountability in the financial operations of charities. It serves as a review of a charity's financial statements by an independent examiner, providing assurance to stakeholders that the accounts are accurate and comply with legal requirements.

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  • What is Charity Independent Examination?

    An independent examination is a form of scrutiny for charities that are not required to have a full audit. It involves a review of the charity's accounts and financial records by a qualified individual who assesses whether the accounts are consistent with the underlying records.

  • When is it Required?

    Charities must undergo an independent examination if their gross income exceeds £25,000 but is below the audit threshold of £1 million. This ensures that smaller charities still maintain a level of financial oversight without the need for a full audit.

  • What are the Thresholds?

    The thresholds for requiring an independent examination are set at £25,000 for gross income. If a charity's income exceeds this amount, they must have their accounts independently examined unless they qualify for an audit.

  • What is Involved in the Process?

    The independent examination process involves reviewing financial statements, checking compliance with regulations, and ensuring that the accounts reflect the charity's financial position accurately. The examiner will provide a report at the end which is called Independent Examiner's report

  • Who Can Conduct an Independent Examination?

    An independent examination can be conducted by a qualified accountant or an individual with relevant experience in charity finance. It's essential that the examiner is independent and has no conflicts of interest with the charity. If the turnover of the charity is over £250,000 the examiner will have to be a member of recognised professional body such as ACCA, IFA etc

  • Benefits of Independent Examination

    Having an independent examination enhances credibility, builds trust with donors, and ensures compliance with legal obligations. It can also help identify areas for improvement in financial management.

  • How Sterling Gate Accountants Can Help

    At Sterling Gate Accountants, we specialise in providing independent examination services tailored to charities. Our experienced team ensures that your financial records are thoroughly reviewed and compliant with all regulations.

  • Get Started with Your Examination

    Ready to ensure your charity's financial integrity? Reach out to us today to discuss your independent examination needs.

How Our Independent Examination Process Work

In four seamless and environmentally friendly stages

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AML Checks and Engagement Letter

By law, we are obligated to perform AML checks on all trustees. We will request proof of identity and address from each trustee of the charity. Upon receiving these documents, we will provide an engagement letter that outlines the scope of our services, fees, and responsibilities.

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Preparation of Accounts and carry out the examination

Upon receiving your draft accounts or trial balance, we will prepare the financial statements in compliance with the Charities SORP (Statement of Recommended Practice) and carry out our examination

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Draft & Approval

Once the accounts and independent examination are complete, we will send the accounts along with our independent examination report in PDF format for the chair to review, approve, and sign the balance sheet.

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Submission to the Charity Commission

Once we receive the signed copy of the accounts, we will sign the independent examiner’s report and send all the required documents to the charity, who will then submit them to the Charity Commission.

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Expert Guidance

Navigating the requirements for confirmation statement filing can be complex. Our experienced team ensures that your statements are accurately prepared and submitted on time.

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Compliance Assurance

Stay in good standing with Companies House by entrusting us with your confirmation statement filing. We keep track of deadlines and ensure that your statements are submitted promptly.

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Tailored Approach

We understand that every business is unique. Our confirmation statement services are customized to align with your specific business structure and reporting needs.

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Peace of Mind

With our professionals handling your confirmation statement filing, you can have peace of mind knowing that your compliance matters are in capable hands.

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Charity Compliance Services

As accountants specialising in the charity sector, we offer comprehensive charity compliance services to ensure that your charity operates in line with legal requirements and regulatory standards. We understand that the charity sector faces unique challenges, and our expert services are designed to help your organisation remain compliant with the ever-evolving laws and regulations, giving you the confidence to focus on achieving your charitable mission.

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