Get 2 months of free community web site hosting from Community123.com!
Friday, October 18, 2019
Get 2 months of free community web site hosting from Community123.com!
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Audits and Reviews
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
LuciusD


Posts:0


12/09/2005 7:30 PM  
Can someone tell me (in Colorado)
1) The difference between an audit and a review.
2) What factors affect the cost of an audit or review
3) A rough cost estimate for an audit of a 200 unit, single family self-managed, association.
RogerB
(Colorado)

Posts:5067


12/10/2005 9:45 AM  
LuciusD, an audit goes beyond the source documents to confirm they are real and true. Whereas, a financial review only compares the source documents to the financial statements. There can be significant variations in the depth to which an audit 'digs'.

After January 1,2006, Colorado statue 38.33.3-303 requires an audit by a CPA every two years --IF-- the annual revenue or expenses exceed $250,000. Also, an audit must be done when it is requested by atleast 1/3 of the units represented by the association. A review can be done by an accountant or other knowledgeable person using statements on standards for accounting and review services. It also, will be required every two years. This statue exempts time-share unit associations. Also, starting in 2006 GAAP is required.

A financial review may be done by homeowners servng on a finance committee of the HOA who are knowledgeable in accounting and their liability can be covered by the HOA insurance. The cost of a financial review might range from $0 to $1000+.

The cost of an audit will vary significantly depending on several factors including the thoroughness of your records; how deeply the CPA 'digs'; and the cost per hour of the CPA used. The auditor certifies the books and may have more potential liability. Expect the cost for a 'minimal' audit by a very inexpensive CPA to exceed the maximum cost of a financial review.

Roger

Please login to post a reply (click Member Login on the menu).



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement