BW (Colorado)
Posts: 28
Posts: 28
Posted:
Can 1/3 of an homeowners association members call for an audit without the association have $250.000 because one has never been done and the officers are changing?
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Review or Audit in Colorado
Started by BW • 3 replies • 2191 views
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RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
BW, the homeowers have the right to request an audit. It depends of what your CC&Rs/By-laws state as to whether an audit is required. They may require it and if so it must be done regardless of $250,000 threshold in CCIAO. Or the Board can chose to do an audit (certainly a new Treasurer should). Or the members can call for an audit based on a percentage of the members which may be specified in the By-laws.
JM2 (Oregon)
Posts: 439
Posts: 439
Posted:
Hi BW:
While an audit might be a good choice (particularly if there is a concern about the finances), there are two other levels of "accounting checks" that can be done, a financial review and a financial compilation (each progressively a less intensive inspection of the finances, but also less expensive). If you suspect financial irregularities, it may be worthwhile to hire a forensic auditor, more intensive but if there have been problems, probably worth every cent.
Also, CAI has a good book on preventing fraud and embezzlement through good policy; check it out at:
http://www.caisecure.net/index.mv?p=R0036
J. Patrick Moore, CMCA
While an audit might be a good choice (particularly if there is a concern about the finances), there are two other levels of "accounting checks" that can be done, a financial review and a financial compilation (each progressively a less intensive inspection of the finances, but also less expensive). If you suspect financial irregularities, it may be worthwhile to hire a forensic auditor, more intensive but if there have been problems, probably worth every cent.
Also, CAI has a good book on preventing fraud and embezzlement through good policy; check it out at:
http://www.caisecure.net/index.mv?p=R0036
J. Patrick Moore, CMCA
KentS (Maryland)
Posts: 12
Posts: 12
Posted:
A Treasurer can do a review of books and prepare a report on his findings, but you can't call it an audit. Auditing standards require that an auditor has to be independent of the entity being audited; being an owner in the development would preclude that independence.
Maryland CPA
Maryland CPA
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