Home owners associations or HOAs, are high risk engagements for auditors, as very little is known about this industry. This has the downside that auditors are not able to plan engagements in a well thought-through manner, leaving them open to audit risk.
The International Standard on Auditing or ISAs, are to be uniquely applied in the special circumstances of an HOA, considering their non-profit-motive and the careful budgeting and spending process usually followed by HOAs.
Our goal is to address the pre-engagement, planning, fieldwork and finalisation phases of a home owners association audit engagement and highlight what’s important for audit trainees, managers and partners to ensure audit quality.
As HOAs are becoming an increasingly popular way to gate-keep residential areas, it brings with it increasing need for auditor awareness when considering the unique circumstances of auditing such an association’s financial statements.
Discuss each of the four phases of the engagement and key things to look out for within each:
The income tax considerations will be discussed in brief
*Fieldwork discussion will focus on an example of financial statements, identifying:
Strong / stable internet connection
