Nicholson and Co Accountancy produces professional annual accounts in the required regulatory format and undertakes independent examinations for organisations with an annual income not exceeding £1,000,000 and gross assets not exceeding £3,260,000.

This is followed up with recommendations for improvements and an offer of support to implement them if needed or required.

Which charities are eligible for Independent Examination?

• Registered charities and charitable companies whose annual income does not exceed £1,000,000.
• Excepted charities such as churches or scout or guide organisations
• Charities whose governing documents/constitutions do not specify an ‘audit’ (constitutions can be amended if this is the only stumbling block)
• Charities where there is not a donor or funder who requires an ‘audit’ ( if they do require an ‘audit’, it may be worth negotiating with the donor/funder)

What are the differences between Audit and Independent Examination?

An audit can only be conducted by a registered auditor or audit firm. The other major differences lie in the level of scrutiny and the nature of the report:

• an independent examiner does not scrutinise a charity’s accounts to the same level as an audit
• an independent examiner writes a report which gives negative assurance (‘no matter has come to my attention …’) rather than positive assurance (a ‘true and  fair’ view).

Benefits of Independent Examination?

An Independent Examination is less work than an audit for all concerned, therefore, it will be more cost effective, allowing charities to spend more time/money on good causes rather than on scrutiny.

An eligible charity can opt for an audit rather than an Independent Examination - but its Trustees should be able to justify that choice, particularly bearing in mind the extra expense incurred.

To discuss your requirements and obtain a no obligation quotation please contact us