The Charities Accounts (Scotland) Regulations 1992

Audit

8.—(1) In the case of a recognised body to which regulation 7(1) above does not apply its balance sheet and income and expenditure account and notes thereon or its statement of balances and its receipts and payments account and notes thereon shall be subject to examination by an independent examiner; and an independent examiner shall be an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts.

(2) In respect of any recognised body to which regulation 8(1) above applies:—

(a) an independent examiner shall be appointed in respect of each financial year who will hold office for that year and may not be removed in respect of that year unless he becomes no longer competent for such an appointment; and any independent examiner so removed may submit a statement to the trustees setting out his observations on the circumstances of such removal and such statement shall be included in the report for the year in question; and

(b) the appointment or removal of an independent examiner shall be made or effected by the trustees except in the case where other provision is made in the recognised body’s founding deed in which case the appointment or removal shall be made or effected in accordance with such other provision.

(3) An independent examiner appointed in terms of paragraph (2) above may resign his office by depositing a notice in writing to that effect with the Trustees and:—

(a) his term of office shall terminate on the date on which the notice is deposited or such later date as may be specified therein;

(b) the notice of resignation shall contain a statement as to any circumstances connected with his resignation which he considers should be stated in the report; and

(c) these circumstances or a statement that there are no such circumstances shall be stated in the report for the financial year in question.

(4) Any independent examiner of such a recognised body to which regulation 8(1) above applies shall have a right of access at all times to the records of the body and shall be entitled to require such information and explanations from the present or former trustees as he thinks necessary for the performance of his duties.

(5) The report of an independent examiner which shall be annexed to the balance sheet and income and expenditure account or statement of balances and receipts and payment account as appropriate shall state whether, according to the best of his knowledge and belief and in accordance with the information and explanations given to him, the balance sheet and income and expenditure account and notes thereon, or the statement of balances and receipts and payments account and notes thereon, have been properly prepared from the records of such a recognised body as is described in paragraph (1) above, are in agreement therewith and comply with the terms of these Regulations and the body’s founding deed, or both.

(6) An independent examiner shall consider whether the information given in the report is consistent with the accounts; and if he is of the opinion that it is not he shall state that fact in his report.

(7) In addition to preparing his report an independent examiner:—

(a) shall be required to carry out such investigations as will enable him to form an opinion as to whether—

(i) proper accounting records adequate for the purposes of the body have been kept; and

(ii) the accounts of the body are in agreement with the accounting records;

(b) if he is of the opinion that proper accounting records have not been kept or if the accounts of the body are not in agreement with the accounting records, shall state that fact in his report; and

(c) if he fails to obtain all the information and explanations, which, to the best of his knowledge and belief, is or are necessary for the purposes of his examination, shall so state in his report.