Five top tips to prepare for an independent examination or audit
Hazra Patel, 13 March 2026
Hazra Patel, 13 March 2026
An audit or independent examination can provide valuable insight into the financial health and governance of a charity. Preparing effectively can help ensure the process runs smoothly and minimises disruption to day-to-day operations.
Taking a proactive approach can also help trustees and management gain assurance that appropriate financial controls and reporting processes are in place.
Below are five practical steps charities can take to prepare.
Charities that have previously undergone an audit or independent examination may already be familiar with the information typically required. However, any charity can benefit from understanding in advance what documentation and explanations may be requested.
Rather than waiting for specific queries during the audit process, it is often more efficient to gather key financial records, reconciliations and supporting documentation ahead of time. Early preparation can help reduce delays and allow staff to respond promptly to follow-up questions.
One of the most common causes of delay during an audit is difficulty locating supporting documentation.
Keeping financial records organised and accessible throughout the year can significantly streamline the process. This may include maintaining secure shared storage systems, ensuring documentation is appropriately filed, and restricting access to authorised personnel only.
Consistent record-keeping also supports good financial governance beyond the audit itself.
Designating a primary point of contact can improve communication and efficiency during the audit process.
An audit liaison—ideally someone familiar with the charity’s financial systems and records—can coordinate responses, collate documentation and liaise with other team members as required. This helps ensure queries are addressed consistently and reduces duplication of effort.
The liaison can also assist trustees in monitoring progress and ensuring any recommendations arising from the audit or independent examination are appropriately considered.
Previous audit or independent examination reports can provide useful insight into areas where improvements were recommended.
Reviewing prior findings ahead of the next audit allows trustees and management to assess whether appropriate action has been taken and whether any recurring issues require further attention. Addressing known areas of concern in advance can help strengthen financial processes and governance arrangements.
Preparing for an audit or implementing recommendations can feel demanding, particularly for charities with limited internal resources.
Seeking professional advice may help trustees assess whether financial systems, controls and reporting processes are proportionate and robust. For example, reviewing accounting procedures or adopting suitable accounting software may improve accuracy and efficiency.
While preparation cannot guarantee a particular outcome, taking reasonable steps in advance can help ensure the process is constructive and well managed.
Preparing for an audit or independent examination can be challenging, particularly where charities have limited finance teams or complex funding arrangements.
Our Charity and Not-for-Profit specialists work with trustees and management teams to review financial processes, strengthen internal controls and ensure reporting systems are audit-ready. We can also help interpret audit findings and support the implementation of practical improvements to governance and financial management.
If you would like to discuss preparing for an upcoming audit or independent examination, please get in touch with our Charity & NFP Partner, Hazra Patel (hazrapatel@lubbockfine.co.uk)
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