Who can be an Independent Examiner?
The Trustees of the Charity for whom the Independent Examination is to be carried out
have to be confident that the person conducting the IE:
- is independent
- has the requisite ability ) to carry out a competent
- and the practical experience ) examination of the accounts
The requirement for the Independent Examiner to have a qualification
- In England and Wales, there are two income ranges where this is relevant. The Charity Commission recommends that:
- the IE is a qualified accountant - or are ‘an individual with similar qualifications in charity finance at an appropriate level’ - for accounts in the £100,000 to £250,000 per year range (or where the charity’s gross assets are over £1m) …
- and that if the accounts are to be prepared on an accruals basis under this threshold, then the requisite understanding of the relevant accounting principles is demonstrated.
However, once the upper limit of £500,000 for IE in England and Wales applies,
anyone examining accounts over £250,000 will have to have a professional
qualification from a prescribed list, which includes Fellows of ACIE.
- In Scotland, for accounting periods beginning on or after 1 April 2006, anyone examining accruals-based accounts (all those of charities with income over £100,000 and any with lower incomes who choose accruals accounting), will have to have a professional qualification from a prescribed list, including the relevant Category of Full Membership of ACIE. This requirement does not apply to pre-1 April 2006 accounts.
- In Northern Ireland, once the relevant legislation is implemented, anyone examining accounts over £100,000 will have to have a professional qualification from a prescribed list, which includes Fellows of ACIE.