Audit or Independent Examination | Trustees’ Short Guide Series

As charities grow and reporting requirements become more complex, trustees need to understand the level of independent scrutiny required for their accounts. Our Audit or Independent Examination Guide provides trustees and charity leaders with a practical overview of the key differences between an audit and an independent examination, helping you make informed decisions that support compliance, transparency and stakeholder confidence.

This concise guide is designed to help you understand your legal obligations, evaluate the benefits of each option and determine the most appropriate level of assurance for your charity. Using this guide, you’ll learn:

• When an audit or independent examination is required, including the latest charity income and asset thresholds applying from 30 September 2026
• How governing documents, funder requirements and trustee discretion can influence the level of scrutiny your charity needs
• The key differences between an independent examination and an audit, including the level of assurance provided by each
• What work an independent examiner undertakes, including reviews of accounting records, fund accounting judgements and going concern assessments
• How an auditor assesses risks, tests transactions and forms an opinion on whether the financial statements give a true and fair view
• Why audits typically involve more detailed testing and greater costs than independent examinations
• How both assurance processes contribute to stronger governance, financial oversight and regulatory compliance
• What trustees should consider when weighing up the benefits, costs and stakeholder expectations associated with each approach.