Condo CPA approach to auditing

Condo Association Audit

Condo Audit Process - Focused on Risk

At C.O.R.E. we realize you are looking for an independent Condo CPA in Washington who focuses on delivering a complete association audit in a timely manner.  But more importantly, you want an effective audit focused on minimizing the risk that your financial statements are inaccurate.   Our audits are always focused on the risks:

  • The risk of theft
  • The risk of inaccurate posting
  • The risk of irregularities

The goal is for the owners and the board to feel confident that the information provided by management is accurate and materially correct.

Most of our condo association audit steps deal with gathering independently verifiable information - like bank confirmations.  This important audit step enables us to rely upon the actual amounts recorded to the association's trial balance for cash and investments.

Beyond that though, we focus on your condominium management's compliance with your budget.  We examine invoices when accounts are over budget and we look to see where management discussed the over-budget situation and received approval.  Spending more than the budget allowed can cause lots of problems - not least of which is the potential for a special assessment to address the cost overruns.  The board's ultimate responsibility is to provide financial oversight and getting board approval to spend more than budgeted is a vital step for maintaining control of the property management's spending.

When it comes to reserve spending, our focus is on ensuring that only licensed, bonded and insured contractors are used on your projects.  We evaluate the condo reserve project quotes to ensure compliance with board requirements, such as

  • Correct number of bids received
  • Licensing was verified by the manager
  • That members of management were not involved with the bidding firms
  • That payments were made to the correct vendor
  • The board, not management, selected the contractor

These steps help ensure that the condo association's reserve funds are spent wisely and in the best interest of the owners.  Our focus is always on protecting the property unit owners.

Once we get to the conclusion steps of the association audit, we ask the board to review the financial statements if we have required changes and then to sign a board representation.  The manager also signs a representation letter stating their responsibilities.  We may also issue a findings letter which highlights things we found that could be corrected to help ensure that association assets are protected.

We then issue the financial statements and are available to discuss the findings and association audit with the board.  We are located in Vancouver, WA and provide attest services from Portland to Seattle, click the box below to start the proposal process.

Are you ready to learn more about how C.O.R.E.'s audit can help you maintain control of your association's finances and feel confident that management is working on your behalf?  Click the link below to contact us and get your proposal today.

Documents to Help Condo Boards and Managers

Presentations, articles, and research to help with the accounting for condominium properties.