HOAs are audited by following the requirements of the International Standard on Auditing ISAs however, because an HOA is not a profit-oriented entity, an audit trainee will need to be aware of how this unique business model skews their focus when attempting to successfully carry out the fieldwork phase of an HOA audit. As HOAs are becoming an increasingly popular way to gate-keep residential areas, it brings with it increasing need for auditor awareness when considering the unique circumstances of auditing such an association’s financial statements.

Discuss the key aspects of the execution / fieldwork phase of the audit of an HOA’s financial statements, namely: - ISA 330 (Revised) required audit response to assessed risks and material / significant classes of transactions account balances and disclosures (SCOTABD) - How to test expenses, considering approved budgets and any potential management rules - How to approach bank accounts / revenue testing - Laws and regulations testing considerations - Fraud testing considerations - Income tax calculation testing considerations

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