Independent Examination
An independent examination is a cost-effective method for charities to ensure financial compliance and accountability, providing essential transparency without the need for a full audit.
Our independent examinations provide an unbiased evaluation of your financial statements, ensuring accuracy and compliance. We tailor our services to meet the unique needs of charities, small businesses, and non-profits, thoroughly assessing every aspect of your financial health.
Understanding Independent Examination
In an independent examination, someone outside the charity reviews its accounts through a simple process of external scrutiny. The examiner’s principal role is to check that the accounts match the charity’s financial records. They also ensure that the charity follows all relevant accounting rules and regulations.
Charity law requires two types of external scrutiny: independent examinations and audits. Audits provide more detailed scrutiny than independent examinations, offering a higher level of assurance.
An audit involves a more in-depth review. The auditor must confirm both the accuracy of the financial records and adherence to accounting standards when recording transactions. The process usually includes testing a sample of transactions and assessing the charity’s internal financial controls.
Most small charities don’t need such detailed scrutiny or the higher costs of an audit. An independent examination is a simpler and more affordable option, offering assurance to trustees, funders, beneficiaries, and the public that an independent party has reviewed the charity’s accounts.
Unlocking the Value of Independent Examination
As a firm of Certified Public Accountants, we maintain high standards of quality. Although this may be a lesser form of audit, we provide the expertise, attention to detail, and knowledge you need. Essentially, ABS Accountancy delivers the credibility, legitimacy, and assurance you require.
By partnering with us, you benefit from our extensive experience and commitment to excellence. We pride ourselves on being trusted advisors, offering the support necessary to maintain financial integrity and achieve your organisational goals. You can rely on us for objective financial health checks that enhance your organisation’s growth. With our meticulous approach, you can focus on your mission while we manage the financial details.
If you run a non-profit, an independent examination by ABS Accountancy offers a straightforward, affordable, yet robust analysis of your financial transactions. This process reassures your trustees, stakeholders, funders, and the public that your accounts accurately reflect your underlying financial records.
We understand that every organisation has its unique challenges and goals. Therefore, we take the time to understand your specific circumstances, allowing us to offer practical advice. Our comprehensive services include detailed financial reviews and actionable recommendations to enhance your financial practices.
In a report published in 2018, the Charity Commission revealed that only 70% of the accounts they reviewed met basic quality standards. Consequently, 30% of the accounts submitted were significantly deficient and did not comply with the guidance.
The Importance of Independent Examination
Accounting integrity serves as the foundation of every charity and significantly influences its credibility. Furthermore, the need for transparency in managing charity finances has become increasingly important due to heightened public and governmental scrutiny.
All registered charities must produce an annual report and accounts each year. However, when a charity’s annual income exceeds £25,000, it requires either an audit or an independent examination. Notably, an independent examination serves as an alternative to the more rigorous audit process.
Moreover, trustees are responsible for appointing a suitably qualified accountancy firm to conduct the audit or independent examination. By maintaining appropriate accounting records, the charity allows its supporters, beneficiaries, and the public to trust in its financial practices.
If your charity’s gross income is over £25,000, you will need an independent examination instead of an audit. Additionally, some funders may require a full audit, so it’s worth checking.
If your charity grosses over £1 million or has gross assets exceeding £3.26 million, you will need a full audit. As experts in charity accounting, we provide independent examinations to ensure financial integrity and compliance.
Why Hire an Professional Accountant for Your Tax Return?

Streamline Your Financial Processes
Engaging an accountant for your independent examination can significantly reduce your administrative workload and save you valuable time. Moreover, ABS Accountancy provides more than just basic oversight of your financial statements.

Ensure Compliance and Accuracy
We guarantee that your financial records undergo a thorough examination and are submitted punctually, ensuring full compliance with HMRC regulations and current legislation. This diligence not only helps you avoid costly errors but also gives you peace of mind by ensuring adherence to legal requirements.

Enhance Financial Insights
Furthermore, by avoiding costly penalties, we assist you in accurately identifying relevant expenses to ensure you’re not overpaying on taxes. In fact, we actively explore opportunities to optimise your financial situation and maximise your savings.
Frequently Asked Questions
Charities often choose an independent examination over an audit because it’s more cost-effective and less time-consuming. For smaller charities, it provides sufficient scrutiny without the higher level of investigation required by a full audit, making it more suitable for their needs.
A charity is required to have an independent examination if its gross annual income exceeds £25,000 but remains below the threshold for a full audit. In the UK, charities with an income typically up to £1 million must undergo external scrutiny. Charities earning less than £25,000 aren’t legally required to have external scrutiny, though it can still be beneficial.
An independent examination is less comprehensive than an audit, concentrating on verifying financial records for accuracy and compliance. While audits involve a more detailed level of scrutiny, independent examinations present a cost-effective solution for maintaining financial integrity without the extensive requirements of a full audit. Our experts provide meticulous, dependable examinations customised to meet your specific needs.
The independent examiner reviews the charity’s financial records to ensure they are consistent with the accounts and meet the legal requirements. However, unlike an audit, the examiner does not provide an opinion on whether the accounts give a true and fair view but instead checks for compliance with relevant regulations and standards.
If we discover any issues during the examination, we will present a detailed report highlighting the areas of concern along with recommendations for improvement. We aim to assist you in effectively addressing these matters, ensuring your organisation’s financial practices are robust and compliant. We collaborate closely with you to implement practical solutions.

Get in touch
If you’re seeking a professional, approachable, and friendly accountancy practice, you’ve found the right place.
Our team is here to provide personalised services, allowing you to focus on what truly matters, whether you’re an individual, sole trader, or owner-managed business.