New CC32 and accompanying checklist CC32a will apply to all independent examinations signed after 1 December 2017.
They can also be applied now.
Some of the changes are:
a shortened section on independent examination at a glance
a greater use of headings to break up the text within each direction
direction 2 new criteria for an examiner providing other services
direction 5 a clarification about correcting accounting records
direction 9 includes a specific reference to the reserves policy
direction 13 includes a definition of a ‘qualified’ examiner’s report
a new section 4 based on group accounts
a revised section 6 on reporting relevant matters
revised examiner’s reports reflecting in-house legal advice and feedback from CCNI and OSCR.
As stated direction 5 has been clarified regarding correcting accounting records. It states ‘5.6 If the examiner identifies and remedies defects, errors and omissions in the accounting records during their examination then the trustees must agree to any amendments to the accounting records. The examiner should consider what amendments have been needed when making their report.’
The recommended checklist for examiners asks the following question requiring an answer and working paper reference: ‘If corrections made or records created during the examination, the trustee approval for these has been sought and obtained.’
The guidance also reminds examiners that ‘all registered charities must disclose their reserves policy in the trustees’ annual report or the trustees’ reason(s) for not having one.’
It states that the ‘examiner must check whether the trustees have considered the financial circumstances of the charity at the end of the reporting period and, if the accounts are prepared on an accruals basis, check whether the trustees have made an assessment of the charity’s position as a going concern when approving the accounts.’
The recommended checklist for examiners asks the following questions, all requiring an answer and working paper reference:
Asked the trustees whether they expect the charity to be able to settle outstanding invoices, bills and commitments as and when they fall due
Asked the trustees about the reserves policy and the adequacy of the level of reserves held