purpose of hoa audits
Additional Information
A homeowners association (HOA) audit is a thorough, detailed review of the association’s finances. HOA audits are an important tool for ensuring the association’s lasting success.
In some cases, homeowners can demand an HOA audit. This type of audit can potentially occur at any time of year. However, whether or not the members of the association have called for an audit, it’s a good idea to perform an HOA audit once a year. When it comes to HOA audits, it’s better to be safe than sorry.
An HOA audit takes financial reviewing to the next level. Under the guidance of a CPA, the HOA performs an in-depth analysis of its financial profiles. Then, the CPA verifies all the information presented in these reports. For example, he or she may contact debtors and creditors to verify the outstanding amounts of various accounts payable and accounts receivable.
The CPA and the association will cross-check the HOA’s financial reports with its physical records during an audit. This means examining meeting minutes, invoices, bills, and general ledgers to ensure that the information in the HOA’s accounts is truly accurate.
