Shining a spotlight on independent examinations of charity accounts
We take a look at what ICAEW’s Quality Assurance reviewers are interested in when reviewing IE reports and gain insights on pitfalls and how to avoid them.
How charities are run and regulated is subject to intense public and media scrutiny. Accountancy firms (and auditors) working in this area need to be aware of the risks and ensure that they carry out and monitor their work in line with statutory and other requirements.
Establishing whether a charity needs an independent examination (IE), a full audit or no formal external financial scrutiny largely depends on size (based on income) and thresholds are clearly laid down. But ensuring that the firm is carrying out the correct level of scrutiny is not always simple.