Auditor’s fee

What is Auditor’s fee?

An auditor’s fee is a payment made by a homeowner association (HOA) to an external auditor, who carries out a comprehensive review of the HOA’s financial statements and records. The goal of this audit is to ensure that the financial statements of the HOA are accurate, complete, and in compliance with accounting standards and regulations.

Why is an Auditor’s Fee necessary?

Hiring an external auditor is important for a HOA, as it helps to maintain transparency and trust among the homeowners. A professional auditor will objectively scrutinize the HOA’s accounts and expenses, identifying any discrepancies or potential issues. The auditor’s report can then be shared with members of the HOA, providing them with confidence in the association’s financial management.

How is the Auditor’s Fee determined?

The auditor’s fee can vary based on several factors. These may include the complexity of the HOA’s financial activities, the size of the association, the number of transactions to be audited, and the reputation and experience of the auditor. It is advisable for the HOA to get quotes from several auditors before deciding on one, to ensure that they are getting the best value for their money.

Is the Auditor’s Fee a recurring cost?

Yes, the auditor’s fee is typically a recurring cost. Most HOAs are required to have their financial statements audited annually, so the auditor’s fee would be a regular part of the HOA’s budget. However, the exact frequency and cost may vary depending on the specific requirements of the HOA’s governing documents and state laws.