Accounts scrutiny guide
Charity audit and independent examination thresholds
Trustees need to decide early whether the charity needs no external scrutiny, an independent examination, or a full audit. The answer depends on income, gross assets, charity structure, governing document wording, funder or regulator requirements, company status, and whether the accounts are receipts-and-payments or accruals accounts.
Start with the threshold decision
- Use the charity's current financial year income, gross assets, legal form, company status, governing document, funder terms, and regulator requirements before deciding the scrutiny route
- Charities with income over GBP 25,000 usually need their accounts checked and must prepare accounts and trustee annual report evidence for filing
- A full audit is usually required where income is over GBP 1 million, or where gross assets are over GBP 3.26 million and income is over GBP 250,000, unless a valid exemption or dispensation applies
- An independent examination may be available instead of audit where the charity is above the checking threshold but below the audit threshold and no governing document, funder, Commission, or company-law rule requires audit
Choose the right examiner or auditor route
- For independent examination, trustees must appoint an independent person with the ability and practical experience to carry out a competent examination
- Where income is over GBP 250,000, CC31 says the independent examiner must be a member of one of the listed accountancy bodies and allowed by that body to act
- Independence is not only a tick-box; trustees should check whether the examiner is a trustee, employee, bookkeeper, finance subcommittee member, major donor, beneficiary, related party, or financially connected to the charity
- If an audit is required by statute, governing document, funder, or Commission direction, trustees should plan audit appointment, timetable, records, trustee availability, and filing evidence much earlier than the annual return deadline
Prepare the evidence pack
- Agree a timetable for draft accounts, accounting records, trustee annual report, examiner or auditor work, trustee review, signatures, and filing within the 10-month Charity Commission deadline
- Keep bank records, invoices, receipts, payroll, Gift Aid, restricted fund records, grant agreements, asset and liability schedules, trustee minutes, reserves evidence, related-party notes, and accounting policies together
- If the charity is a company, check Companies House filing timing as well as the Charity Commission annual return timetable because the routes are not the same
- If the charity has subsidiaries, unusual funds, material related parties, serious incidents, qualified accounts, weak records, or examiner concerns, get professional review before relying on a simple threshold answer
Avoid misusing public accounts signals
- A late filing, independent examination, audit, qualified accounts signal, or material-significance report needs context and should not be turned into an unsupported quality or safety claim
- For donors, funders, journalists, suppliers, or partners, use the audit or examination route to decide what to read next: accounts, trustee annual report, examiner or auditor report, official register, charity response, and multiple years of filings
- For charity teams, use the decision to improve controls: month-end close, document retention, restricted fund records, payment approval, reserves explanation, risk register links, and trustee review cadence
- Do not rely on this page to decide compliance; use current GOV.UK/Charity Commission guidance, the charity's professional adviser, examiner, auditor, and official filing services
Official sources
Official source
Charity reporting and accounting: the essentials (CC15d)
Charity Commission guidance on annual reports, accounts, annual returns, independent examination, audit, and what must be sent to the Commission for accounting periods starting before 1 January 2026.
Official source
Independent examination of charity accounts: guidance for trustees (CC31)
Charity Commission trustee guidance on when independent examination can be used, who can examine, independence, appointment, preparation, reporting, and filing.
Official source
Independent examination of charity accounts: examiners (CC32)
Charity Commission directions and guidance for independent examiners and the matters that must be included in the examiner's report.
Official source
Audit exemptions for charities
Charity Commission guidance on audit exemption and applying for dispensation from audit requirements in exceptional circumstances.
Official source
Prepare a charity annual return
GOV.UK guidance on annual return filing, 10-month deadline, income bands, independent examiner reports, and full audit triggers.
Official source
Prepare a charity's annual accounts
GOV.UK route for deciding the type of accounts a charity needs to prepare.
Official source
Prepare a charity trustees' annual report
GOV.UK guidance on preparing the trustees' annual report that accompanies accounts where required.
Official source
Charity accounts, financial reporting and tax collection
GOV.UK collection for charity accounts, financial reporting, tax, independent examination, and related Charity Commission guidance.
Related tools
Interactive tool
Charity accounts filing deadline checker for England and Wales
Enter a charity financial year end date to estimate the usual Charity Commission annual return deadline and build a filing evidence checklist. The tool follows the public 10-month rule but does not replace Charity Commission guidance, professional advice, or the official register.
Interactive tool
Charity accounting software requirements checker
Check whether a charity is ready to shortlist Xero, QuickBooks, Zoho, Microsoft Dynamics 365 Business Central, fundraising-platform exports, or a more specialist finance setup. The checker turns finance software buying intent into requirements, reconciliation risks, and source-checked software routes.
Interactive tool
Charity internal financial controls checker
Check whether a charity's internal financial controls have the evidence trustees need before year-end accounts, fraud review, bank mandate changes, online banking setup, fundraising events, grant payments, supplier payments, or serious incident follow-up. The checker follows Charity Commission CC8 themes without giving accounting, audit, tax, legal, investment, fraud investigation, or governance advice.
Interactive tool
Charity reserves policy checker
Check whether a charity reserves policy has the evidence trustees need before annual reporting, grant conversations, budget review, risk review, or reserves target changes. The checker follows Charity Commission CC19 themes without giving accounting, audit, insolvency, investment, or legal advice.
Interactive tool
Charity risk register checker
Check whether a charity risk register has the evidence trustees need before annual reporting, insurance renewal, cyber review, service planning, reserves review, funding decisions, or major supplier changes. The checker follows Charity Commission CC26 themes without giving legal, insurance, audit, safeguarding, investment, or governance advice.
Interactive tool
Charity serious incident reporting checker
Check whether an actual or alleged incident has strong Charity Commission serious-incident reporting signals and whether the trustee body has the evidence needed before using the official report form. The checker follows GOV.UK serious incident guidance without giving legal, safeguarding, criminal, insurance, audit, data-protection, or governance advice.
Interactive tool
UK charity number lookup and official register cross-check
Look up a charity number, name, or postcode in the selected imported data sample, then open the official Charity Commission register for final verification. This is a research shortcut, not a complete official database or a charity recommendation.
Common questions
FAQ
When does a charity need an audit?
GOV.UK annual return guidance says a full audit is needed where income is over GBP 1 million, or where gross assets are over GBP 3.26 million and income is over GBP 250,000. A governing document, funder, Commission, or company-law requirement can also make audit necessary.
FAQ
When can a charity use independent examination instead of audit?
CC31 says trustees will usually be able to choose independent examination where gross income is more than GBP 25,000 but not more than GBP 1 million, and where charities over GBP 250,000 income do not exceed the gross asset threshold, provided no governing document, funder, or Commission requirement requires audit.
FAQ
Who can independently examine charity accounts?
The examiner must be independent and have the ability and practical experience needed. For income over GBP 250,000, CC31 says the examiner must be a member of one of the listed accountancy bodies and allowed by that body to undertake the role.
FAQ
Do small charities need their accounts checked?
Trustees of charities with gross income of GBP 25,000 or less do not usually have to arrange external scrutiny of accounts, but they should still check the charity's governing document, funder terms, structure, regulator rules, and any special requirements before relying on that position.
FAQ
Is independent examination the same as audit?
No. CC31 describes independent examination as a narrower form of scrutiny than audit. It does not involve forming a true-and-fair audit opinion, but the examiner still checks specified matters and may report concerns to trustees or regulators.
FAQ
Can this site decide whether my charity is compliant?
No. This site can help trustees prepare questions and evidence, but the final decision needs current GOV.UK/Charity Commission guidance, the charity's own records, professional advice, and official filing services.
Decision notes
- This guide is not accounting advice, audit advice, tax advice, legal advice, Companies House advice, independent examiner appointment advice, governance advice, or a compliance decision.
- Thresholds, legal form, company status, governing document wording, funder requirements, and regulator instructions can change the answer for a specific charity.
- The linked accounts filing checker estimates the 10-month annual return planning date only; it does not decide whether an audit, independent examination, exemption, or dispensation applies.
- Do not enter accounting records, payroll, bank details, personal data, trustee conflicts, claims, or sensitive financial evidence into this site.