Education
External Audit & Assurance
Specialist, sector-led audit services that move beyond basic compliance to provide rigorous validation and strategic financial insights for your Trust or school.
Navigating the future of education compliance
In the current educational landscape, the annual audit is no longer a simple historical review of figures. It has evolved into a high-stakes assessment of a Trust’s governance, stewardship of public funds, and adherence to the increasingly granular requirements of the Academy Trust Handbook (ATH) and the Academies Accounts Direction (AAD).
At Armstrong Watson, we recognise that for a Chief Financial Officer, the audit is a public-facing testament to your Trust's financial health. Our approach is designed to move beyond the "tick-box" exercise. We provide a rigorous, sector-led audit that validates your financial position while offering the strategic insight needed to strengthen your internal processes for the years ahead.
A specialist approach to the Academies Accounts Direction
The ESFA updates the Accounts Direction annually, and 2026 has brought specific challenges regarding the disclosure of senior leadership pay, the treatment of capital grants (SCA and CIF), and the accounting for PFI contracts. Generalist auditors often overlook these nuances, leading to avoidable queries from the ESFA later in the year.
Our specialist education team lives and breathes these regulations. We don't just verify your year-end trial balance; we ensure that your Trustees’ Annual Report tells a compelling and compliant story of your educational impact and financial sustainability.
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Contact the teamThe regularity audit: Protecting the accounting officer
Unique to the academy sector is the Regularity Audit. As your auditors, we must provide a conclusion on whether the Trust has used public money for the purposes intended by Parliament. This is a critical protection for the Accounting Officer (usually the CEO), whose personal reputation is tied to the regularity of the Trust's spending.
Our regularity testing is thorough and proactive. We focus on high-risk areas identified by the ESFA, including:
Novel and contentious Payments
Ensuring any "special" staff severance or compensation payments have received the necessary prior approval from the DfE.
Related Party Transactions (RPTs)
Reviewing the "at cost" requirements and ensuring all RPTs over the £20,000 threshold have been properly reported and authorized.
Alcohol and Corporate Gifting
Verifying that the Trust has not inadvertently breached the "public money" usage rules on non-educational expenditure.
Our audit methodology: "no year-end surprises"
We understand that the "audit window" in the autumn term is the busiest time for your central finance team. To mitigate stress and ensure a smooth filing process, we utilise a year-round communication model:
- Spring planning meeting: We meet with the CFO to discuss any major changes in the Trust, such as school transfers, re-brokered academies joining the MAT, or significant capital projects.
- Interim testing: We conduct systems testing early in the year, identifying potential weaknesses in your control environment before they manifest as audit findings.
- The Management Letter: At the conclusion of the audit, we provide a detailed report to the Audit and Risk Committee. This isn't just a list of errors; it’s a strategic document offering practical recommendations to improve your efficiency and resilience.
Supporting the wider education sector
While we are a MAT-first firm, our assurance expertise extends across the sector.
- Independent schools: We provide audits under the Charity SORP, focusing on the accounting for endowments and the critical "public benefit" disclosures.
- FE colleges: We handle the complexities of the FE/HE SORP, providing assurance over learner-number data and funding claim integrity to protect your ESFA financial health grading.
Frequently asked questions
Expert insights from our team.
Not necessarily. We use a risk-based sampling method. We audit your central finance systems and visit a sample of schools to test local controls, ensuring a proportionate yet robust process.
We provide independent certification of your End of Year Certificate (EOYC), ensuring your pension contributions are reconciled and filed accurately to avoid penalties.
Get in touch
Get in touch to speak to one of our specialist advisers and explore how we can help you.
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