HOA Financial Audit Checklist
Comprehensive audit preparation checklist covering financial records, governance documents, and internal controls.
About This Template
A thorough financial audit protects your HOA from fraud, ensures accurate record-keeping, and builds homeowner trust in board leadership. This comprehensive audit checklist guides boards through preparing for professional audits or conducting internal financial reviews.
The checklist covers four critical areas: financial record verification, governance document review, internal controls assessment, and compliance verification. Each section includes specific items to review, common red flags to watch for, and documentation requirements.
Whether you're preparing for a CPA-conducted audit, conducting an internal review, or simply want to ensure your association's financial house is in order, this checklist provides a systematic approach to examining every aspect of your HOA's financial operations.
What's Included
- Financial records verification section
- Bank reconciliation review checklist
- Accounts receivable aging analysis
- Vendor payment verification process
- Reserve fund reconciliation steps
- Internal controls assessment
- Governance compliance review
- Insurance policy verification
- Tax filing status checklist
- Board approval documentation requirements
- Common fraud indicators to watch for
- Audit trail documentation guide
How to Use This Template
- 1Schedule the audit 2-3 months before your fiscal year-end
- 2Assign a board member or committee to lead the audit process
- 3Gather all financial statements, bank statements, and invoices
- 4Work through each section systematically
- 5Document findings and any discrepancies discovered
- 6Address issues immediately—don't wait until year-end
- 7Prepare a summary report for the full board
- 8Use findings to improve internal controls going forward
Who Should Use This
- HOA treasurers preparing for annual audits
- Audit committees conducting internal reviews
- Board members overseeing financial operations
- Property managers ensuring client compliance
- Self-managed communities without formal audit requirements
- New treasurers wanting to verify predecessor's records
Frequently Asked Questions
Requirements vary by state and your CC&Rs. Many states require annual audits for associations above certain budget thresholds (often $75,000-$150,000). Even if not required, best practice is an annual audit or review, with a full audit at least every 3 years.
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