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What Is a Community Association Audit,
and When Does Your Board Need One?

A community association audit is an independent examination of an HOA, condo association, or cooperative’s financial statements, performed by a CPA firm under AICPA standards. Most associations need one because their governing documents, state statutes, or a lender require it. Strauss has specialized in community association audits since 1986. Most CPAs do this work as a sideline. We do it as a specialty. This page covers what the audit includes, when your board or management company needs to schedule one, and what to look for in a firm that treats community associations as the main thing, not the occasional thing.

We do not believe in one-size-fits-all audits. Every step is tailored to your community’s structure and challenges. Size, ownership type, location, governing documents, and level of board involvement all shape the engagement. The result is an audit experience that is efficient, clear, and collaborative, whether we are working with your management company or reporting directly to your board.

The Result?

An audit experience that’s efficient, insightful, and surprisingly collaborative.

Whether we’re working with your management company or reporting to your board, our approach is thoughtful, responsive, and designed to support everyone involved.

What Your Board Gets From the Audit

As a board member, you carry a fiduciary responsibility to your community, and the audit is one of the main tools that lets you fulfill it. We treat your board as a partner, not just a client. Our role is to deliver independent assurance and clear, accessible guidance so you can govern with confidence.

A Strauss audit for your community typically includes:

  • Examination of the association’s financial statements under AICPA standards specific to common interest communities.
  • Review of reserve fund accounting and how it lines up with your most recent reserve study.
  • Assessment of internal controls, with plain-language recommendations for stronger oversight or better transparency.
  • Operational observations drawn from having audited a large volume of associations, so you can see what peers are doing.
  • A clear written report your board can share with homeowners, lenders, or insurers.

Boards that work with Strauss come away with more than an audit report. You get a clearer picture of your community’s finances, and the confidence of having a specialist, not a generalist, on your side.

How Property Managers Work With Strauss During Audit Season

We know what managing a portfolio of associations looks like during audit season. Requests stack up. Board meetings do not stop. Lenders want documentation on short timelines. Our job is to make the audit easier for you, not harder.

Because community associations are our specialty, we already know the systems you use, the documents you need, and the recurring questions boards will ask. We work to:

  • Keep disruption to your daily operations low with clear request lists and predictable timing.
  • Communicate early, so you are not chasing us and we are not chasing you.
  • Answer technical questions from your boards in language board members can actually follow.
  • Stay available year-round for CAI industry questions, transition audits, and reserve-related questions that do not wait for audit season.

Management companies choose Strauss because our audits close cleanly, our communication is steady, and we make the manager look good to the boards they serve.

Why
Choose Us?

We have audited community associations since 1986. It has always been our core practice, not a sideline

You work with a team whose primary focus is HOA, condo, and cooperative accounting. We know CAI, PCAM, reserve specialists, and the rules that apply to common interest communities

You get technical depth on par with a large firm, delivered at the pace and availability of a boutique

Our communication is clear, consistent, and early. Boards and managers are never left wondering where their audit stands

We operate with the independence and integrity that AICPA standards require, on every engagement

Frequently Asked Questions About Community Association Audits

When does an HOA or condo association need an audit?

Most associations need an annual audit because their governing documents, a state statute, or a lender requires it. Many states require audits above certain revenue thresholds. Even where state law does not require one, mortgage lenders, insurers, and refinancing packages frequently do. If your association has never had an audit, that is a conversation worth having with your CPA.

What is the difference between an audit, a review, and a compilation?

An audit is the highest level of assurance. A CPA firm independently examines the financial statements and issues an opinion. A review provides limited assurance through analytical procedures and inquiries, but no testing. A compilation is the preparation of financial statements in proper format without any assurance at all. Most associations need an audit. Smaller associations may qualify for a review or compilation, depending on what their governing documents and lenders allow.

How long does a community association audit take?

For a well-prepared association, fieldwork usually takes a few weeks, with the final report delivered within roughly 60 to 90 days of year-end. Timing depends on the size of the association, the completeness of records from the management company, and whether any unusual items (a major reserve study update, a special assessment, a management transition) need additional attention.

What is a transition audit, and when is one required?

A transition audit is performed when governance of the community transfers from the developer to the homeowner-controlled board, usually once a defined share of units has sold. It examines the association’s financial position at the point of transition and is required by most state condo and HOA laws. Getting a transition audit right matters because it sets the baseline the homeowner board inherits.

How should a board choose a CPA firm for a community association audit?

Specialization matters more than size. Ask how many community associations the firm audits each year and whether community associations are a core practice or a sideline. Ask how they handle reserve fund accounting, how they work with property management companies, and whether they have experience with your state’s specific requirements. A firm that audits a handful of associations a year is in a different position than one that audits thousands.
If your community association is selecting an auditor, scheduling this year’s audit, or preparing for a management transition, we’re ready to help. Strauss has audited community associations for four decades, and it is still the work we do most. Reach out through the contact form below or call 410-363-1011 to start the conversation.

Testimonials

We sincerely value the services provided by Strauss & Associates for over 30 years. Their team has been exceptional, consistently offering accurate, helpful guidance and quick responses. Their client service is truly awesome, making collaboration smooth and enjoyable. It’s been a pleasure working with such a dedicated and professional team.

Gail W Senior Director of Operations
Owings Mills, MD

For over 25 years, Strauss & Associates has been a cornerstone of trust and excellence in financial auditing for our Community Associations. Their seasoned team brings insight and professionalism to every association. They deliver thorough, transparent audits that meet regulatory standards and provide strategic value. I wholeheartedly recommend this reliable and experienced partner.

Jodi C Executive Vice President
Towson, MD

As Treasurer at my association, I worked with Strauss & Associates for 6 years. Their services were an invaluable asset. They are incredibly knowledgeable, always responsive, and provided proactive advice on tax planning and financial strategy. This ensured we had accurate audits and tax returns. I highly recommend the Strauss team for expert, reliable financial support.

Jaci H Association Treasurer
Chester, MD

Our HOA has engaged Strauss & Associates since 2022 for our annual audited financials and tax returns. They demonstrated professionalism, making the transition remarkably smooth. Their work is consistently high-quality, delivered on time, and supported by clear communication. The Strauss team is responsive and easy to work with and a trusted partner for the accuracy of our financial reporting.

Conrad H Association Treasurer
Olney, MD

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