More than just a tick-box exercise

For charity trustees, the annual review of accounts is one of the most significant events in the calendar. However, many view it as a stressful regulatory hurdle. At Armstrong Watson, we view the audit process differently.
We see it as a vital tool for stewardship. A robust audit or examination does more than satisfy the Charity Commission; it validates your financial health, reassures your donors, and protects the reputation of your board. Whether you are a small grant-making trust or a large service-delivery organisation, our goal is to make the process rigorous, helpful, and jargon-free.

Understanding your obligations: audit vs. independent examination

Navigating the thresholds set by the Charities Act can be confusing. We help you determine exactly what level of scrutiny your charity requires based on your gross income and assets.

1. Statutory Charity Audit You are legally required to have a full audit if:

• Your gross income exceeds £1 million; OR
• Your gross income exceeds £250,000 AND your gross assets held exceed £3.26 million.

Our audit team conducts a "deep dive" into your finances, compliant with International Standards on Auditing (UK). We look at income recognition, grant conditions, and internal controls to provide "reasonable assurance" that your accounts are true and fair.

2. Independent Examination (IE) If your income is between £25,000 and £1 million (and you don't meet the asset threshold above), you may only require an Independent Examination. This is a "light touch" review. It is less intrusive and less expensive than an audit. Our examiners look for specific issues and provide "negative assurance"—confirming that nothing has come to our attention to suggest proper accounting records haven't been kept.
Note: Even if you are below the threshold, your governing document (constitution) or a major funder may insist on a full audit. We can check this for you.

Our audit process: what to expect

We know that preparing for an audit can disrupt your finance team. We aim to minimise this through a structured approach:
1. Planning: We meet with your Treasurer or Finance Director early to identify key risks (e.g., a new income stream or a property sale) so there are no surprises later.
2. Fieldwork: Whether remote or on-site, our team works efficiently to verify your figures, respecting your staff's time.
3. The Management Letter: Beyond the certificate, we provide a "Post-Audit Report" to the trustees. This highlights any weaknesses in your internal controls (e.g., potential fraud risks or inefficient processes) and offers practical recommendations for improvement.

Specialist assurance services

• Grant Audits: Verifying spend for funders like Innovate UK, The National Lottery, or local government.
• Systems & Controls Reviews: A non-statutory review to help trustees sleep easier by ensuring checks and balances are working.