Board members hear these three words all the time and they get used interchangeably. They are not the same thing, and they do not cost the same. Here is the plain-English version.
All three reports are issued by licensed CPA firms that are independent from whoever keeps the books.
Start with your governing documents. Many declarations and bylaws say whether the association needs an annual audit, review or compilation, and some tie it to the size of the budget. Lenders, insurers and owners can also ask for one. If the documents are silent, many boards choose a review as a middle ground and get a full audit every few years or when something feels off.
Powder Accounting Group does not perform audits, reviews or compilations. We keep the books, and that is exactly what makes those engagements faster and cheaper. When your CPA firm arrives, the bank and reserve accounts are already reconciled, the general ledger is clean, and the records they ask for are organized and ready. We work directly with your auditor so the board does not have to play middleman.
No. Audits, reviews and compilations are issued by an independent CPA firm. We keep the books and prepare the records your CPA firm needs.
A compilation is the least work, then a review, then an audit. Your CPA firm will quote based on the size and condition of the books.
Check your declaration and bylaws first, since many set the requirement. If you are unsure, ask your association attorney.
Usually, yes. Auditors spend less time when accounts are reconciled and records are organized.
We are a small Colorado firm based in Frisco, not a national chain. When you call, you reach a real person who knows your books. Call (970) 633-3997 or schedule a call with our team. You can also see what HOA accounting costs.
More: Colorado HOA accounting services · self-managed boards · HOA tax returns
