Board Members, Homeowners and State Regulators often need assurance that the financial statements accurately represent the true financial position of a Community Association.

We provide two levels of assurance to meet your Community Association's needs as required by NRS 116.31144 1 which states:

(a) If the annual budget of the association is $45,000 or more but less than $75,000, cause the financial statement of the association to be reviewed by an independent certified public accountant during the year immediately preceding the year in which a study of the reserves of the association is to be conducted pursuant to NRS 116.31152.

(b) If the annual budget of the association is $75,000 or more but less than $150,000, cause the financial statement of the association to be reviewed by an independent certified public accountant every fiscal year.

(c) If the annual budget of the association is $150,000 or more, cause the financial statement of the association to be audited by an independent certified public accountant every fiscal year.

The following are summaries of the two levels of assurance required by the state of Nevada:

Audit - Highest Level of Assurance

An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general practice.

Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.

An Audit allows you to...

• Satisfy users of the financial statements, as to the credibility of published information.
• Comply with Nevada Regulators.
• Help deter and detect material fraud and error.

Here's what you get...

You get the highest level of assurance because we go outside your Community Association to obtain more information. Typically, we'll have written communication with:

• Your banks, to confirm cash or debt balances and terms,
• Your attorneys, for information on pending or threatened legal action.

We document and test each operating cycle, including revenue and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client's supporting work papers.

Review - Limited Assurance

Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your Community Association's Managing Agent. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.

A review doesn't require us to study and evaluate your Community Association's internal controls or verify data with third parties or vouch accounts payable. Rather, a review report expresses limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.

Which Report Should You Use?

Each type of financial statement report may suit specific circumstances, depending on requirements from Community Association's governing documents and the state of Nevada statutes, as well as meet budgetary needs.