Section 1 Introduction
What this Guide covers
This Guide aims to explain, in broad terms:
• How to understand what form of external scrutiny is applicable to different charities
• What independent examination involves
• What responsibilities and duties are attached to the role of the independent examiner.
Who is this Guide for?
This Guide is for anyone who acts as an Independent Examiner for a registered Scottish Charity, or anyone who has been asked to act as an Independent Examiner for a registered Scottish Charity.
Find out more about preparing accounts from our Accounts and finance guidance and Annual monitoring page.
How to use the guide
The Guide is split into sections to help you find the information most relevant.
Key terms are highlighted in bold purple type. Clicking on these terms will take you to either the charity law glossary on our website or to our specific accounting terms glossary.
Within the Guide, we have posed some ‘milestone’ questions for the reader. These are designed to help indicate when to make a particular decision. We have provided some answers to these questions and some practical tips. Hopefully you will find these helpful as you progress through the Guide.
The main piece of charity law in Scotland that sets out the requirements for being a charity and establishes OSCR.
The 2006 Regulations set out in detail what information trustee annual reports and charity accounts must contain and when they must be submitted to OSCR. Amendments to The Charities Accounts (Scotland) Regulations are as follows: 2007, 2010, 2014, 2016, 2017 and 2018.
The SORP sets the framework for charity financial reporting in the UK for charitable companies, charities with income of £250,000 and more and all other charities preparing accruals accounts.
OSCR publishes general guidance for charities, but we can’t provide specific advice on the full range of things which can happen in or affect your charity.
Below is a list of organisations, professional bodies and publications that can help with some or all of the areas set out in the Guide and more:
- Local Third Sector Interfaces offer a range of support to voluntary organisations.
- The Scottish Council for Voluntary Organisations (SCVO).
- If your charity is part of an umbrella organisation, such as Early Years Scotland or the Development Trusts Association Scotland, the umbrella organisation or parent charity may be able to give you support.
- The Charity Commission is the Regulator for charities in England and Wales and provides information and advice on matters affecting charities in England and Wales.
- The Charity Commission for Northern Ireland is the Regulator for charities in Northern Ireland and provides information and advice on matters affecting charities in in Northern Ireland.
- Companies House has information on Company law and the accounting rules for companies.
Professional bodies:
- The Institute of Chartered Accountants of Scotland
- The Institute of Chartered Accountants in England and Wales
- Chartered Accountants Ireland
- The Association of Chartered Certified Accountants
- The Association of Authorised Public Accountants
- The Association of Accounting Technicians
- The Association of International Accountants
- The Chartered Institute of Management Accountants
- The Institute of Chartered Secretaries and Administrators
- The Chartered Institute of Public Finance and Accountancy
- The Association of Charity Independent Examiners
- The Institute of Financial Accountants
- Accounting and Reporting by Charities: Statement of Recommended Practice 2015. Copies can be downloaded at: charitiessorp.org. Hard copies may be purchased from CIPFA. Contact 020 7543 5600.
- Practical Guide to Financial Management for Charities and Voluntary Organisations. By Kate Sayer, 3rd edition, 2007, Directory of Social Change. ISBN 978 1 903991.
- The Charity Treasurer’s Handbook. By Gareth Morgan, 5th edition. 2017, Directory of Social Change. ISBN 978 1 78482 013 8.