Independent examination

IE is a review, not an audit. The examiner:

• Checks the accounting records are properly kept
• Checks the accounts match the records
• Checks the accounts comply with the relevant accounting regulations (R&P or SORP)
• Reviews the Trustees' Annual Report for consistency with the accounts
• Reports to the trustees on whether anything was identified that, in the examiner's opinion, was inconsistent with these or any other matter that should be drawn to attention

What IE does not do: provide an audit opinion, verify the existence of every asset, test every transaction, or give a positive assurance that everything is correct. It is a check, not a guarantee.

Independent means not connected to the charity in a way that would compromise objectivity: not a trustee, not an employee, not a close family member of a trustee, not someone with a material business relationship with the charity.

Routes that work for small charities:

• Association of Charity Independent Examiners (ACIE). ACIE members are specifically trained in charity-specific IE. The ACIE directory lists examiners by region
• Local CVS or infrastructure body. Many Councils for Voluntary Service maintain lists of charity-friendly examiners
• Local accountancy firms. Many small accountancy firms offer charity IE as a service line — ask for a quote
• Word of mouth. Other small charities locally usually have a recommendation
• Pro bono routes. The Charity Finance Group, Volunteer Centres, retired-accountants schemes (e.g. REACH Volunteering, NCVO) sometimes match charities to volunteer examiners

Avoid: someone with no charity-sector experience (the SORP and R&P regulations have specifics that catch people out), and anyone with a relationship to the charity that could be challenged as compromising independence.

1. Trial balance and supporting ledgers for the accounting period
2. Bank statements for every account, plus bank reconciliations
3. Receipts, invoices and other supporting vouchers for a sample of transactions
4. Cash records if cash is handled
5. Gift Aid claim records and supporting declarations
6. Restricted fund records — what came in, what was spent on the restricted purpose
7. Asset register — what the charity owns and at what value
8. Loan and lease agreements
9. Minutes of trustee meetings for the year
10. Previous year's accounts and examiner's report
11. Draft accounts and Trustees' Annual Report prepared by the treasurer
12. Constitution / governing document for reference

The cleaner the records, the faster (and cheaper) the examination. Disorganised records turn a £300 job into a £900 one.

The examiner produces a written report addressed to the trustees, structured per Charity Commission Directions and the CCNI / OSCR equivalents. The report:

• States the examiner's name and qualifications
• States the basis of the examination (cited Directions)
• Sets out the work performed
• States whether anything was identified that gives the examiner cause for concern (or not — clean reports are the norm)
• Identifies any matters that require disclosure to the regulator under the “matters of material significance” regime

The report is filed with the charity's accounts at the Charity Commission and made available to members. A clean report is standard for well-run small charities; reports with concerns trigger Commission attention.

• Charity accounting thresholds →

  R&P vs accruals, the income thresholds for IE and audit, the October 2026 reforms.

• Gift Aid for community groups →

  Gift Aid records are one of the things examiners look at most carefully.

• Community group treasurer guide →

  The treasurer is usually the person who briefs the examiner.

• Compliance hub →

  All compliance guides on one page.

• Charities Act 2011 ss.144–151 (independent examination of accounts)
• Charities (Accounts and Reports) Regulations 2008
• Charity Commission Directions for Independent Examiners (current edition)
• Charity Commission CC32 Independent examination of charity accounts: Trustees
• Charity Commission CC31 Independent examination of charity accounts: Examiners
• Charities SORP 2026 (FRS 102); FRS 105 for micro-entity non-charity CICs
• DCMS announcement on charity financial thresholds (31 October 2025)
• Association of Charity Independent Examiners (ACIE)