We understand that condominium association board members are volunteers who often do not have time to devote to a lengthy audit engagement process. In addition, they do not want to be constantly concerned about the “meter-running” or the resulting financial surprise of billable hours beyond their initial quote. LBA Haynes Strand offers a streamlined process to reduce time and create efficiencies for board members and their respective management company.
Condo Association By-Laws often require an annual Audit, Review or Compilation by an independent Certified Public Accountant. When complying with these by-laws, Board members fulfill their fiduciary responsibility to the Association.
What is the difference between an Audit, a Review, and a Compilation?
A Condo Association audit provides the highest level of assurance from an independent certified public accountant. Selecting an independent CPA that specializes in Condo Associations allows the Board and management to work with a professional that is in tune with the intricacies of their Association. An audit is much more in-depth in terms of scope than a compilation or a review type of engagement. The independent CPA is going to opine on the financials, that are the responsibility of the Association, provided to the independent auditor by either the Board or the management company.
A financial review is less in scope than an independent audit, but more involved than a compilation. It provides you with limited assurances from the independent CPA over the financial statements as a whole. Review procedures involve inquiry and analytical procedures to determine if there is a material modification.
In comparison, a compilation is far less in scope than a review. It provides no assurance or opinion on the financial statements.
Which of the three levels of service is right for my Condo Association?
Some Condo Associations require an audit while others require a review or a compilation, and in most cases, this is spelled out in the by-laws.
How much do these services cost?
The fees of each engagement are dependent on the controls and the processes of each management company. To receive an accurate and fair quote from LBA Haynes Strand, contact us for a no-cost consultation. Our team is happy to discuss your condominium association audit needs.