Cohousing-L Mailing List: Re: When Is a financial Audit Required or Recommended?

[Henning Mortensen (hmortensen]

In our area, we have two options. We can do an audit or a review. The
difference is that with an audit the auditor can be sued if they miss
something. A review is done in the best efforts and does not carry this
opportunity to sue if an error is made.

Because auditors have to carry insurance against getting sued for audits,
audits cost much more.
The last time I looked, a review was $300 and an audit closer to $2000.

If the concern is having a second set of eyes making sure you haven't
missed something, then a review is sufficient. If you want to be protected
against your treasurer stealing from you, and you don't have sufficient
controls in place, then an audit is desired.

Of course, this is in my jurisdiction and laws vary by jurisdiction, so
your mileage may vary.

Henning

On Wed, Oct 23, 2019 at 8:37 AM Diana Carroll <dianaecarroll [at] gmail.com>
wrote:

> How do you all go about finding an auditor?  Does anyone in the New England
> area have one to recommend?  Or maybe auditors are from national companies,
> if so, which do you use?
>
> How much does an audit cost?  (Roughly...ballpark figure.  I have no idea
> if it would be $100 or $1000...)
>
> Thanks,
> Diana
> Mosaic Commons in Berlin, MA
>
>