A review consists of the auditor inquiring of association or management company personnel and performing analytical review procedures in order to verify the financial records of the association. Unless deemed necessary, the accountant is not required to obtain any independent corroboration to substantiate the amounts in the financial statements. In contrast, as part of an audit, the auditor must obtain independent evidence to substantiate the assertions made by the association’s management in the financial statements. An audit also includes assessing risk through gaining an understanding of and testing the association’s relevant internal controls. In addition to a big difference in detail and thoroughness, a review can cost hundreds or even thousands of dollars less than an audit. The board of directors makes the decision on what level of attestation is performed.

Since 1991, our team members have experience with a wide variety of common interest realty associations including, small three unit condominium associations to large 4,200 unit property owner associations. Our team of HOA specialists stays current in this highly technical practice area by adhering to continuing professional education requirements of the AICPA. We also annually review the updates from the AICPA Audit & Accounting Guide for Common Interest Realty Associations.