What is an independent examination of charity accounts?

An independent examination is the external scrutiny option available to most smaller UK charities. It sits below a full statutory audit in depth and cost, and is the route the majority of registered charities with gross income between £25,000 and £1 million take each year. For financial years ending before 30 September 2026: charities below £25,000 gross income need no external scrutiny; charities above £1 million (or above £250,000 with gross assets over £3.26 million) require a statutory audit instead. For everything in between, an independent examination applies. For financial years ending on or after 30 September 2026 the gates rise: no scrutiny up to £40,000, audit above £1.5 million (or above £500,000 with gross assets over £5 million).

Gross income (England and Wales, financial years ending before 30 Sep 2026)	Required scrutiny
£25,000 or below	None (governing document may impose one)
Over £25,000 up to £1 million (assets below £3.26m)	Independent examination
Over £250,000 with gross assets over £3.26 million	Statutory audit mandatory
Over £1 million	Statutory audit mandatory

When is an independent examination enough?

Broadly, a registered charity in England and Wales needs some form of external scrutiny once gross income passes £25,000 (£40,000 for financial years ending on or after 30 September 2026). A full audit is only required once gross income exceeds £1 million, or where income exceeds £250,000 and gross assets exceed £3.26 million (£1.5 million, £500,000 and £5 million for years ending on or after that date), or where the governing document demands one.

What does the examiner check?

The examiner reviews the accounting records and the accounts, and confirms whether anything suggests the accounts have not been prepared properly. It is a review, not the evidence-gathering exercise an audit is.