An independent examination is an external check of a charity's accounts that is lighter and cheaper than an audit. Smaller charities can have one in place of an audit once their income is above the level at which some external scrutiny becomes compulsory.
How it differs from an audit
| Independent examination | Audit | |
|---|---|---|
| Carried out by | An independent person with suitable experience. For larger charities, a member of a recognised professional body | A registered auditor |
| Conclusion | Whether anything has come to the examiner’s attention that needs reporting | An opinion on whether the accounts give a true and fair view |
| Depth | A review of the records and accounts | Detailed testing and verification |
Which one applies
It depends on the charity’s gross income and, for an audit, its assets. The smallest charities need neither, those in the middle need at least an independent examination, and the largest need an audit. A charity’s own governing document, or a funder, can require more than the law does.
Heads up — the thresholds have gone up for charities in England and Wales. For financial years ending on or after 30 September 2026, an independent examination is needed once gross income is above £40,000 (previously £25,000), and an audit once gross income is above £1.5 million, or above £500,000 with gross assets over £5 million. For earlier years, check the Charity Commission’s guidance for the limits that applied.
The examiner’s or auditor’s report is attached to the accounts and filed with them.
See also the Charities SORP and, for companies, audit exemption.
