The new Directions that take into account the increase in threshold for independent examination reporting periods (financial years) ending on or after 31st March 2015 and the revised list published on 13 April 2017 of reportable matters of material significance to the charity regulator.

The revised guidance includes three new directions relating to conflicts of interest, the disclosure of related party transactions and the charity's financial circumstances.

• Direction 2 sets out requirements for examiner independence; examiners must check for any conflicts of interest that may prevent them from carrying out the independent examination.

• Direction 7 requires examiners to check that related party transactions in ‘SORP accounts’ (cases where charity accounts are prepared on an accruals basis) are properly disclosed.

• Direction 9 requires examiners to check whether the trustees have considered the charity’s financial circumstances when preparing the accounts, and for SORP accounts whether the trustees have made an assessment of the charity’s position as a going concern.

Nigel Davies, head of accountancy services at the Commission, said: “These new requirements and the more robust examination process will ensure that charities’ accounts are sufficiently scrutinised and that any regulatory concerns are identified as early as possible.

“It will also provide reassurance to trustees and the public that there is adequate oversight over charity's’ finances.

“We’re grateful to everyone that provided feedback to us during the consultation process and the working party members who assisted us.

“The improvements that we’ve made to the guidance as a result, such as creating a new checklist for examiners, will ensure that examiners are well equipped to meet the new requirements and that there is an appropriate balance between the duties of charities and examiners, and the need for a robust independent examination process alongside high-quality, transparent charity reporting.”

The updated guidance and Directions must be followed by independent examiners when carrying out their independent examination. For independent examiner’s reports signed and by the examiner and dated on or after 1 December 2017 the new Directions and guidance must have been followed for the independent examination to have been done correctly. The date from which the new Directions are mandatory is 1 December 2017.

Examiners are encouraged to follow the new Directions and guidance straight away and not wait for the mandatory date of 1 December 2017.

The Commission has also produced a revised checklist for Independent Examiner’s (CC32a), Both publications are available via the Commissions’s website at: https://www.gov.uk/government/publications/independent-examination-of-charity-accounts-examiners-cc32