Home owners associations or HOAs, are high risk engagements for auditors, as very little is known about this industry. This has the downside that auditors are not able to plan engagements in a well thought-through manner, leaving them open to audit risk. The International Standard on Auditing or ISAs, are to be uniquely applied in the special circumstances of an HOA, considering their non-profit-motive and the careful budgeting and spending process usually followed by HOAs. Our goal is to address the pre-engagement, planning and finalisation phases of a home owners association audit engagement and highlight what’s important for audit managers and partners to ensure audit quality.

Identify and clarify the audit requirements of an HOA and what your auditor reporting responsibilities are. Discuss the phases of the engagement and key things to look out for as part of preparing your working papers, including the implications of the revised ISA 315 and 330. Phases to be discussed: - Pre-engagement - Planning - Finalisation The income tax considerations will be discussed in brief.

☒Auditors ☒Audit managers ☒Audit partners ☒Engagement Quality Control Reviewers