Audit Expense

[Burke]

Can anyone tell me a price range for an audit by a CPA for an HOA with gross annual income of $125 - $135K? Does the number of members make any difference?

[taxea]

Whatever the CPA normally charges for an audit. Would you base the fee for the audit of HP on the # of employees or shareholders?

[S T]

What type of audit? are you referring to an 1120H or 1120S audit?

Hourly rate, not based on income of the HOA or members

Sandy

[Burke]

No. I am talking about an audit of the Association's books, which would involve the bank accounts, income & expenses, balance sheet, etc. The gross income now appears to be in the $170 - $180K range. And I should have included the information that the Association's treasurer does not handle any of this. All is handled by a professional real estate company that does property management for a number of HOA's. They furnish the board with monthly financial reports, which include copies of the bank accounts and the cancelled cks, record of the monthly income and expenses, delinquencies report, reconciliation of the checkbook, and the current balance sheet. They collect all dues and pay all expenses authorized by the board on an ongoing basis. The Treasurer does not even sign the checks. The Assn wants to know a price range for an annual, outside audit of this process should it be required.

PS: The reason I mentioned number of members, is that each property owner is a member of the HOA and they pay monthly dues. These dues have to be tracked and booked for all owners. The property management company does a delinquency report each month. I am not sure that would be an item they are required to audit, however. I provided the gross income because I think that would indicate the extent of work involved in this particular case.

I was hoping that a CPA who had been involved in this type of situation could give me some guidance on potential costs. If such a person has this information, they could send me a PM rather than posting on the forum if they wish.