EXTERNAL ACCOUNT SCRUTINY
To maintain public confidence in the work of charities and Not for Profit organisations, charity law requires most charities to have an external scrutiny of their accounts.
Provided a charity is not required by law or its governing document to have an audit then trustees may choose a simpler and less expensive form of external scrutiny called an independent examination.
An examination involves a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also involves a review of the accounts and the consideration of any unusual items or disclosures identified.
It is important to note that verification and vouching procedures, where an item in the accounts is checked against an original document such as an invoice or a receipt, only become necessary where significant concerns are identified from the work of the examiner, or where satisfactory explanations cannot be obtained from the trustees. We offer this as part or our bookkeeping service.