According to Florida Statute, a community association with total annual revenues of $200,000 or more, but less than $400,000 must prepare reviewed financial statements.
A review is a higher level of service than a compilation because it results in an expression of limited assurance that the financial statements conform to GAAP. Usually, inquiries and analytical procedures provide the accountant with a reasonable basis for this conclusion.
In a review, the accountant has the same responsibilities as a compilation, as well as:
An accountant's independence from the client is required in order to issue a review report on the financial statements. Any direct ownership will impair independence.
Community Association Services
Compilations - Obtaining information from management in an effort to prepare financial statements. A compilation does not provide assurance that the statements are fairly presented. Financials are formatted in order to be easily read by outside sources.
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: