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Audit of Accounts

  • Member PM.Dip
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  • # 122961

I have been asked by a small charity within my town if I can audit their annual accounts.

They have said they can provide me with their annual accounts, which consist of a spreadsheet of their annual accounts, along with their bank statements and invoices.

All I have to do it check to see if I agree that all transactions have been included in this spreadsheet and the final balances agree with the bank statements.

Can anyone tell me if I am legally allowed to audit these accounts and sign to say that I agree with their findings.

I am qualified to AICB level.

It seems very straightforward but I don't want to issue a statement that I have audited their accounts if I am not legally allowed to do so.

Thanks

 

 

 

 
  • Member
  • 15 posts
  • # 122962

.

Edited at 20 Oct 2024 11:33 PM GMT

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    Sabir Elias AATQB MICB

    Accounting Professional with 15+ Years’ Experience

    Interested in collaborating? Check my email in my bio.

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  • Member
  • 15 posts
  • # 122963

Just to add, you will also be required to hold an auditing practise licence given to you by the recognised bodies mentioned below. 

 

75.151 Who can act as an auditor?

 

An auditor must be independent of the company [Note 19] with a current practicing certificate issued by one of the recognised supervisory bodies [Note 20]. The recognised supervisory bodies currently (2011) are The Institute of Chartered Accountants in England and Wales, The Institute of Chartered Accountants of Scotland, The Institute of Chartered Accountants in Ireland, and the Association of Chartered Certified Accountants.

 

https://www.gov.uk/government/publications/life-of-a-company-annual-requirements/life-of-a-company-part-1-accounts#auditors

  • =====

    Sabir Elias AATQB MICB

    Accounting Professional with 15+ Years’ Experience

    Interested in collaborating? Check my email in my bio.

    =====


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SimonCh
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  • # 122968

 

Doi they need an Audit, or would an 'Independent examination' suffice.

 

Its my understanding these can be undertaken with an ICB Practice license. Guidance on the Charity Commission website.

 

Simon
  • Member
  • 15 posts
  • # 122969

Simon, as per the Guidance below, it does not even list ICB in the Appendix list of approved independent examiners body.

Independent examination of charity accounts: guidance for trustees (CC31)

Appendix: independent examination of charity accounts CC31

 

Could you please share what section or url of charity commission did you read that ICB practice holders can be an independent examiner?

 

Url source

Independent examination of charity accounts: guidance for trustees (CC31) - GOV.UK



Edited at 28 Oct 2024 07:06 PM GMT

  • =====

    Sabir Elias AATQB MICB

    Accounting Professional with 15+ Years’ Experience

    Interested in collaborating? Check my email in my bio.

    =====


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SimonCh
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  • # 122992

sabirelias said:

“Simon, as per the Guidance below, it does not even list ICB in the Appendix list of approved independent examiners body.

Independent examination of charity accounts: guidance for trustees (CC31)

Appendix: independent examination of charity accounts CC31

 

Could you please share what section or url of charity commission did you read that ICB practice holders can be an independent examiner?

 

Url source

Independent examination of charity accounts: guidance for trustees (CC31) - GOV.UK



Edited at 28 Oct 2024 07:06 PM GMT”

 

Sabirelias,

If you check the guidance you have referenced you will see that it is not mandatory for a examiner to be a member of one of the listed bodies (Charities <£250000 turnover) , however, they do have to have certain skills identified within the text, varies depending whether Cash accounting or Accruals.

When you apply for a practice license, its included in the list of services you can offer. "Independent Examination for charities below £250,000 turnover".

 

Rgs
Simon

 

 

 

 

 

 
  • Member PM.Dip
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  • # 123004

Suzy Cubes said:

“

I have been asked by a small charity within my town if I can audit their annual accounts.

They have said they can provide me with their annual accounts, which consist of a spreadsheet of their annual accounts, along with their bank statements and invoices.

All I have to do it check to see if I agree that all transactions have been included in this spreadsheet and the final balances agree with the bank statements.

Can anyone tell me if I am legally allowed to audit these accounts and sign to say that I agree with their findings.

I am qualified to AICB level.

It seems very straightforward but I don't want to issue a statement that I have audited their accounts if I am not legally allowed to do so.

Thanks

 

 Hi Suzy

As a small charity it is very rare that they will want an audit,  but more likely an Independent Examination would normally be needed, but only if the income is above £25K.  You would need to check the charitiy's Constitution/Registration document and/or resolutions passed by the trustees at AGM whether or not an audit is called for. 

If you are new to the IE of charity accounts there is a lot more involved than the cross-checking of transactions. There is lots of  guidance on the Charity Commission website, including this one for Independent Examiners.

https://www.gov.uk/government/publications/independent-examination-of-charity-accounts-examiners-cc32

Hope this is of help  Smile

Best wishes

Lorraine Brown

 

 

 
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