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| IHG Insurance (National Insurance Provider) |
| Providing Community Association Insurance for over 25 years: D&O Liability, Crime Products, Umbrella Coverage and Property Manager's Errors & Omissions Liability. |
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| Author |
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FrankD2
(New Jersey)
Posts:49
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| 02/28/2008 7:24 AM |
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I would like some suggestions as to what items should be audited
in and audit conducted by a cpa. our auditor wants to perform a
compliation audit or review audit. I want to be sure all important
areas are covered. |
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JosephW
(Michigan)
Posts:788
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| 02/28/2008 8:09 AM |
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The explanation of the various levels of examination a CPA can provide when going over your books is below:
Compilation
The CPA compiles information in the form of financial statements. The information, however, is specifically the representation of the management (the board and any agent or officer-employee) of the association. The CPA takes little responsibility for these statements, is required to perform very few procedures, and gives no assurance to the client or other readers as to compliance with generally accepted accounting principles (GAAP).
Review
The CPA performs limited procedures, consisting primarily of inquiries and analytical procedures; and provides negative assurance to the association that financial statements are properly prepared in accordance with GAAP. This level of service requires that the CPA be familiar with the industry and the association's documents and operations and that the CPA be independent with respect to the association.
Audit
The CPA performs an examination of the financial statements, and issues a positive statement as to their compliance with GAAP. Extensive procedures are performed. This level of service requires the CPA to have extensive industry knowledge, thorough understanding of the association, and the CPA must be independent with respect to the association.
The compilation and review might be adequate if you have a very small budget, very few financial transactions and your records are current and in good shape. If not, or if you have recently changed from developer to owner control, or changed management, then you should seriously consider an audit.
Joe |
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Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal |
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FrankD2
(New Jersey)
Posts:49
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| 02/29/2008 8:07 AM |
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joe
thanks for your response. what i am looking for are specific
test checks that could be sdded to the review audit such as bank recs,
confirmaton of invested balances, documentart checks, etc.
i would like more than what the review does and a lot more than the compilanion.
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FrankD2
(New Jersey)
Posts:49
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| 02/29/2008 8:07 AM |
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joe
thanks for your response. what i am looking for are specific
test checks that could be sdded to the review audit such as bank recs,
confirmaton of invested balances, documentart checks, etc.
i would like more than what the review does and a lot more than the compilanion.
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JosephW
(Michigan)
Posts:788
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| 02/29/2008 8:33 AM |
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Try these:
http://www.aicpa.org/download/practmon/prp2005/prp_22060.doc
http://www.nysscpa.org/cpajournal/old/12106213.htm
http://swagman.typepad.com/poa_governance/2005/08/aicpa_audit_and.html
Joe
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Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net
*See legal notice below (end of page) or go to www.hoatalk.com/legal |
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