Don’t Overlook the Need and Importance of HOA Financial Audits, Reviews, or Compilations

State laws and/or an association’s governing documents typically contain provisions that require a homeowners association to have periodic financial audits, reviews, or compilations, and association boards and management personnel should be familiar with such provisions to insure compliance. These investigations into the financial affairs of a homeowners association are important to identify the association’s financial strength and potential issues concerning the financial management of the association and to protect against mismanagement, fraud and misappropriations of the association’s funds.

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