According to Florida Statute, a community association with total annual revenues of $100,000 or more, but less than $200,000 must prepare compiled financial statements. The purpose of a compilation engagement is to present data the client's management supplies in financial statement format in order to be easily read by outside sources.
A compilation does not provide any assurance that the statements are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). During a compilation engagement, it is normally not required for an accountant to make inquiries or perform procedures to verify or corroborate the information provided by the client.
However, an accountant is expected to:
At the completion of the engagement, the accountant issues a report which includes, among other things, any supplementary information made available by the client and discloses departures from GAAP, if any.
Community Association Services
Reviews - Inquiries and analytical procedures are conducted, providing limited assurance on the financial statements. A review is a mid-level assessment performed by an independent accountant.
Audits - An examination, on a test basis, in accordance with generally accepted auditing standards, providing reasonable assurance that the financial statements are free of material misstatements. An audit is a formal examination of an organization's accounts or financial situation.
Call one of our community association financial representatives at: