Audit Questions

Started by DavidG45 • 3 replies • 170 views

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DavidG45 (Delaware)
Posts: 994

Posted:

I was recently named to a new Finance Committee. In the past, while we were under Declarant control, the property manager hired the same company every year to perform an annual audit. The audit starts in March, and we get the results late June to early July. I am curious to hear from others if the timing seems typical. I would also like to hear from people regarding the scope outline in their contract with the audit company.

The Finance Committee would like to conduct our own search for an independent audit company. We want to get an idea about the scope, cost, and timing that we should anticipate. We also are curious to hear how we find a suitable company. We do not trust our Property Management company, so asking for their advice is not an option.

TimB4 (Tennessee)
Posts: 21,062

Posted:

You are auditing your previous fiscal years financials, not your current year.

Therefore, one would need to allow some time for all checks to clear from the end of the fiscal year.
Most Associations have their fiscal year match a calendar year, but not always.

Expecting your fiscal year ends in December, contacting an auditor in February or March makes sense.

When I served as Treasurer, I would make contact in February but have to wait until May for the process to start because many CPAs are working on tax deadlines.

BillD16 (Texas)
Posts: 973

Posted:

I’m very interested in what people will have to say about this.

BillD

HOA Board ex-President
Austin, Texas USA

“You can’t put too much water in a nuclear reactor”

MaxB4
Posts: 3,513

Posted:

There are type types of financial audits for a HOA, 1) Review, 2) Audit and 3) Forensic Audit. A review and audit are the same, with a CPA charging more for a audit. Your governing documents and state codes will determine what and when the review/audit is required and by whom.

In California, a review is required to be provided to owners 120 days after the end of an HOA's fiscal year.

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