Updating guidance for independent examination of charity accounts

The Charity Commission (England and Wales) has opened a consultation on guidance on the external scrutiny of charity accounts (CC32) and extending this to consolidated accounts.

The Commission has

“decided it was time to consult on the external scrutiny of charity accounts because of a number of recent developments including the change in the thresholds for audit and the preparation of consolidated group accounts; and the UK charity regulators’ consultation on matters of material significance that must be reported to regulators, and lastly changes in expectations of the charity sector post Keeping Kid’s Company.”

Charities with an annual income between £25,000 and £1 million can opt for their finances to be scrutinised by independent examination rather than a full audit. This covers over 50,000 charities of the 62,000 required to have an external scrutiny, and the last major review of independent examination was in 2009. Any changes are intended to come into effect for reporting periods ending on or after 31st March 2017.

See official news release or Civil Society News coverage. Or go direct to the web page for ‘Consultation on updating the framework for independent examination‘. Response deadline morning of 30th September.