The e-book reviews all applicable charity law and accounting standards, and then gives a detailed consideration of the practicalities of how you do an Independent Examination anywhere in the UK.
The regulators may issue directions and guidance, but there is little out there that gives advice on the practicalities of how you actually do the work, what you put in the file, and what are the danger signs to look for.
This book looks at all the law and guidance that is available, and for areas where there is little guidance or case law, it examines guidance in other related disciplines, such as audit, to discover what lessons might be learnt for Independent Examination, and what practices and procedures should be followed.
About the author, Peter Brown BSc, FCCA, FCIE, DChA
Peter Brown is a Chartered Certified Accountant, and a registered auditor. He holds the prestigious Diploma in Charity Accounting granted by the Institute of Chartered Accountants in England & Wales.
Peter Brown is a member of the Council of the Association of Charity Independent Examiners (ACIE), one of the bodies recognised by the Charities Act 2011 as able to authorise their members to conduct Independent Examination.
Peter Brown lectures widely around the UK to charity trustees, examiners and auditors on charity law and accounting.
Peter Brown’s firm, Peter Brown & Co, has been awarded the ACCA Quality Assured Mark. There are only a few hundred firms of accountants to whom this award has been made.
Over 50% of the income of Peter Brown & Co’s practice is derived from work in the charity sector. Peter Brown also writes the software that is a purchased add-on for charity accounts to VT Software’s accounts production programmes, enabling accountants and charities to prepare SORP compliant accounts. So Peter Brown has a good working knowledge of charity matters as they relate to both large and small charities.
Peter Brown & Co has operated a paperless office since early 2000. Peter Brown & Co has not maintained a physical file for any accounts production, tax or audit work since that time. Staff of the firm work remotely over the Internet accessing the firm’s files electronically. This means that Peter Brown & Co are at the cutting edge of professional practice procedures.
Peter Brown is also a member of the Medical Practitioners’ Tribunal Service (better known to many people as the GMC) and is a panellist on the MPTS Fitness to Practice Panels, which adjudicate on complaints against members of the medical profession.
Peter Brown was an elected member of York City Council for 13 years, so has a good working knowledge of the relationship between local authorities and the voluntary sector.
Peter Brown is a former HM Sheriff of the City and County of York, and a past Master of the Guild of Scriveners of York (The Accountants’ Guild)
CONTENTS (there may be minor changes in the downloaded version, as it will be updated from time to time)
INTRODUCTION
PART 1. 1
1 Overview of current charity law and regulation. 2
2 The different legal forms of charities. 6
3 Charities with special status under the law (England & Wales only) 13
4 History of the legislation and UK GAAP and the current position. 16
5 The law of trusts and fund accounting. 20
6 Charity Commission and OSCR Guidance and definition of terms. 25
7 Types of charity accounts to be prepared, Trustees’ Annual Report, and publishing accounts. 31
8 Accounts for charity groups, associates, joint ventures and branches. 35
9 Accounting and audit thresholds. 42
10 External Scrutiny. 49
11 The SORP - Statement of Recommended Practice. 52
12 Trustees’ Report 56
13 THE SOFA (Statement of Financial Activities) 61
14 Balance Sheet 67
15 Summarised and abbreviated financial statements. 70
16 The Future of legislation and accounting standards. 74
PART 2 – The nuts and bolts of conducting an Independent Examination.. 76
17 What is an independent examination, and what entities are subject to one?. 77
18 An introduction to the Guidance and Directions issued by the Charity Commission and the Guidance published by OSCR.. 85
19 Where are the boundaries between accountancy and examination?. 92
20 Understanding professional rules, the law and the accountancy framework. 95
21 The directions and how to comply with them.. 98
PART 3 - Charity Commission Directions and Guidance. 101
22 Direction 1 - Examination and accounting thresholds. 102
23 Direction 2 – Documentation. 111
24 Direction 3 - Understanding the charity. 130
25 Direction 4 - Accounting records. 137
26 Direction 5 - Comparison with accounting records. 147
27 Direction 6 - Analytical procedures. 162
28 Direction 7 - Form and content of accounts. 167
29 Direction 8 - Accounting policies, estimates and judgements. 171
30 Direction 9 - Trustees’ annual report 175
31 Direction 10 - The Examiner’s report 178
32 Statutory and discretionary reporting – Whistleblowing. 182
Part 4 - Other Reference Information.. 191
33 The pitfalls of independent examination. 192
34 Rules in Other Parts of the UK and IOM.. 195
35 Accounting Requirements. 198
36 Scrutiny Requirements. 201
37 Filing Requirements. 209
The e-book "How to Conduct an Independent Examination" is downloadable in pdf format when you place it into the basket. It is readable under all operating systems, provided you have a suitable pdf reader installed on your device.
When you make your payment, the pdf file will immediately be visible. You should save it to your computer with an appropriate file name. You can always come back later and download it again, by logging in with your email address and the password you created when you first purchased the book.
This book is based on the SORP 2005 (modified in 2008) as this will remain the basis for all accounts whose accounting periods commence before 1st January 2015. For most purposes, the new SORPS will not affect accounting periods before 31st December 2015, and therefore will not become relevant until early 2016, as the new SORPS cannot be adopted early.
The existing 2005 SORP will continue to be relevant until late 2016 for periods commencing before 1st January 2015.
It is anticipated that a new edition , with the text updated for the new SORPS will be available in late 2015.