HOA Financial Audit

What is an HOA financial audit?

A financial audit is an independent review of the HOA’s financial statements, typically by a CPA. It’s a more rigorous process than a financial review or compilation, involving testing of records and internal controls to verify accuracy.

Why is an HOA financial audit important?

It helps ensure accuracy, prevent fraud, and increase homeowner confidence. Some states or governing documents require regular audits, especially for larger associations or those with significant reserves.

How can you use “HOA financial audit” in a sentence?

The board scheduled an HOA financial audit before approving next year’s budget.