What is an HOA financial audit?
A financial audit is an independent, rigorous review of an HOA’s financial statements, typically performed by a CPA, that goes beyond a basic review to actually test the records and internal controls for accuracy.
Why does an HOA financial audit matter?
An audit is one of the clearest ways a board can prove to residents, and to itself, that the community’s money is being handled honestly and correctly. Skipping audits for years at a time is exactly the kind of gap that lets small errors, or worse, go unnoticed.
When You’ll Run Into This
Many governing documents require an audit at a specific interval, or after a certain dollar threshold in spending, so it’s worth checking what your community’s rules actually require rather than assuming it’s optional. Our step-by-step guide to performing an HOA audit covers what the process actually involves.
