PPC's Guide to Homeowners' Associations and Other Common Interest Realty Associations
HOA
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This is the most comprehensive Guide ever written about homeowners’ associations, condominium associations, cooperative housing corporations, and time share developments. It includes the planning tools you need to identify risks and helps you select appropriate audit procedures to respond to those risks. It covers the unique accounting, auditing, reporting, and tax issues for CIRAs and shows you how to perform audit, compilation, review, and tax engagements both effectively and profitably. A particularly valuable feature of this Guide is its detailed guidance on interpreting the complex income tax rules that CIRAs must follow and on selecting the least costly tax reporting alternative.
TOC for HOA
INTRODUCTORY MATERIAL
PREFACE
PEER REVIEW OF THIS GUIDE
HOW TO USE THE GUIDE
ACKNOWLEDGMENTS
ACKNOWLEDGMENT OF COPYRIGHTS
ABOUT THE AUTHORS . . .
LIST OF SUBSTANTIVE CHANGES AND ADDITIONS
CHAPTER 1: OVERVIEW OF COMMON INTEREST REALTY ASSOCIATIONS
100 WHAT ARE COMMON INTEREST REALTY ASSOCIATIONS?
Common Characteristics
Types of CIRAs
Condominium Associations.
Homeowners' Associations.
Cooperative Housing Corporations.
Comparison of Certain Common Interest Realty Associations.
Mixed-use Associations
Layered Associations.
Combined Associations.
How CIRAs Are Established
Selecting a Method for Managing the Common Property.
Preparing the Necessary Legal Documents.
Transferring Control of the CIRA to the Property Owners.
101 REGULATORY ENVIRONMENT
Federal Regulations
Lending and Lending-related Agencies.
HUD Assisted Projects.
Bankruptcy Legislation.
State Regulations
Uniform Laws.
Specific State Condominium Statutes.
HOA and Cooperative State Statutes.
Privacy Regulations
The Fair and Accurate Credit Transactions Act.
Privacy Considerations.
Significance to Accountants
102 INDUSTRY TRENDS
Some Statistics
What Accounts for the Growth?
Economic Pressures.
Community Considerations.
Demographic Factors and Life-style Changes.
Scarcity of Natural Resources.
The Future
What Does It Mean for Accountants?
CIRA Membership Organizations
Management Designations within the CIRA Industry
103 ACCOUNTANTS' INVOLVEMENT WITH CIRAS
Reporting on Financial Statements
Tax Services
Replacement Fund Studies
Nonattest Services
104 SCOPE OF PPC'S GUIDE TO HOMEOWNERS' ASSOCIATIONS AND OTHER COMMON INTEREST REALTY ASSOCIATIONS
CHAPTER 2: THE CIRA LEGAL ENVIRONMENT
200 INTRODUCTION AND BACKGROUND INFORMATION
Hierarchy of Legal Documents
Summary of Principal Documents
201 CONDOMINIUMS
Condominium Declaration
Description of Property.
Unit Owners' Percentage Interest in the Common Property.
Developer Assessments.
Priority of Liens.
General Use Restrictions.
Insurance Requirements.
Amending the Declaration.
Other Provisions.
Bylaws
General Content.
Accountants' Reports and Providing Financial Statements to Unit Owners.
Minutes.
Assessments and Fees.
Replacement Funds.
Contractual Obligations and Execution of Documents.
Related Parties.
Rights of Mortgage Holders.
Amending the Bylaws.
Articles of Incorporation
Rules and Regulations
Other Documents
202 PLANNED UNIT DEVELOPMENTS
Declaration of Covenants, Conditions, and Restrictions
Common Expense Liability.
Authority for Other Assessments.
Incurring Debt.
Transition.
Other Provisions.
Bylaws
Other Documents
203 COOPERATIVE HOUSING CORPORATIONS
Articles of Incorporation
Type of Corporation.
Qualifications as Cooperative Housing Corporation.
Proprietary Leases
General Provisions.
Tenant Assessments.
Transferability of Interests.
Transfer Fees and Flip Taxes.
Terminating Proprietary Leases.
Amendments.
Bylaws
Tax and Financial Reporting Obligations.
Rights of Lenders.
Amending the Bylaws.
Rules and Regulations (House Rules)
204 MASTER ASSOCIATIONS
205 TIMESHARE DEVELOPMENTS
Declaration of Covenants, Conditions, and Restrictions
Common Property.
Use Rights and Restrictions.
Bylaws
206 COMMERCIAL ASSOCIATIONS
Ownership
Operations
Governing Documents
Declaration of Covenants, Conditions, and Restrictions.
Additional Information
CHAPTER 3: ACCOUNTING PRINCIPLES AND PRACTICES
300 AUTHORITATIVE ACCOUNTING LITERATURE FOR CIRAS
AICPA Audit and Accounting Guide
GAAP for CIRAs
Framework for Determining Appropriate Accounting Principles for CIRAs
Are CIRAs Nonprofit Organizations?
Using the FASB Codification to Determine GAAP for CIRAs.
Industry Accounting Practices.
Grandfathered Guidance.
Nonauthoritative Guidance.
Using Present Value Information in Accounting Measurements
Difference in Treatment of Specific Transactions for Financial Reporting and Tax Purposes
301 CASH AND CASH EQUIVALENTS
Overview of Accounting Standards
Distinguishing between Cash, Cash Equivalents, and Investments
How Cash Is Defined.
Accounting Policy for Determining Cash Equivalents.
Financial Statement Presentation.
Cash Designated for Specific Purposes
Interest Allocated between Operating and Replacement Funds.
Legally Restricted Cash.
Required Disclosures
Other Cash Funds
Segregation of Cash for Tax Purposes
302 MARKETABLE SECURITIES
Overview of Accounting Standards
Categorization of Securities.
How SFAS No. 115 Affects CIRAs
Determining Whether Debt Securities Should Be Classified as Held to Maturity
Consequence of Selling Held to Maturity Securities before Maturity.
Authors' Recommendations.
Transferring Securities between Categories
Accounting for Treasury Securities
Types of Treasury Securities.
Accounting for Treasury Bills.
Determining Fair Value.
Authors' Recommendation.
Accounting for Treasury Notes and Bonds.
Determining Fair Value.
Presenting Unrealized Gains and Losses in Equity.
Derivative Instruments
What Is a Derivative?
Contracts Not Subject to SFAS No. 133.
Common Uses of Derivatives.
General Measurement Considerations.
Types of Derivative Instruments.
General Disclosure Considerations.
Accounting for Investments in Annuities
Declines in Value That Are Other Than Temporary
Determining When an Investment Is Impaired.
Determining Whether the Impairment Is Other Than Temporary.
Recognizing and Measuring an Impairment Loss.
Income Tax Considerations
303 MEMBER ASSESSMENTS, OTHER INCOME, AND RECEIVABLES
Overview of Accounting Standards
Disclosure Requirements from SOP 01-6.
Member Assessments
Delinquent Assessments.
Assessments Received in Advance.
Allocating Assessments to Replacement Funds.
Special Assessments
Financial Statement Disclosures.
Refunds of Excess Special Assessments.
Income Tax Considerations.
Developer Receivables
Assessments.
Legal Settlements.
Disclosing Concentrations of Credit Risk
What Are Financial Instruments?
Definition of Credit Risk and Market Risk.
Unique Disclosure Considerations for CIRAs.
Disclosing Concentrations of Credit Risk for Cash Deposits.
Credit Risk Associated with Other Financial Instruments.
Ancillary Operations
General Considerations.
Revenue Recognition.
Expense Allocation.
Capitalization and Depreciation.
Reserve Considerations.
Other Income
Utility Pass-throughs.
304 COMMON PROPERTY AND OTHER REAL PROPERTY
What Is Common Property?
Capitalizing Common Real Property
Categories of Common Real Property.
Prevalent Industry Practice for Capitalizing Common Real Property.
Authors' Recommendations.
Income Tax Considerations.
Capitalizing Common Personal Property
Need for a Specific Capitalization Policy
Valuing Common and Other Real Property
Purchased Common Property.
Common Property Transferred to the CIRA by the Developer.
Other Real Property Transferred to the CIRA.
Common Property Leased by the CIRA.
Capitalized Interest.
Impaired Assets.
Asset Retirement Obligations.
Reporting Common Property in Financial Statements
Financial Statement Disclosures
Depreciation
Income Tax Considerations.
Damage or Defect Settlements
Settlements Received Prior to Incurring Expenses and Total Expenses Are Estimable.
Settlements Received Prior to Incurring Expenses and Total Expenses Are Not Estimable.
Settlements Received after Incurring Expenses and Total Revenue and Expenses Are Estimable.
Settlements Received after Incurring Expenses and Total Revenue and Expenses Are Not Estimable.
Accounting for Settlement Proceeds Related to Members' Property.
Accounting for Expenditures for Litigation Expenses.
Capitalizing vs. Expensing Repair Expenditures.
CIRA Board's Responsibilities for Settlements.
305 PREPAID EXPENSES AND OTHER ASSETS
Prepaid Insurance
Other Prepaid Expenses
Inventories
Deposits
306 FUNDS FOR FUTURE MAJOR REPAIRS AND REPLACEMENTS
Accounting for Assessments and Expenses
Interfund Transactions
Interfund Transfers versus Interfund Receivables and Payables.
Assets Purchased with Replacement Funds.
Financial Statement Disclosure
Disclosures about Funding for Future Major Repairs and Replacements.
Required Supplementary Information.
Disclosures about Disaster Insurance Deductibles.
307 CAPITAL IMPROVEMENT FUNDS
308 PRACTICAL GUIDELINES FOR PERFORMING A RESERVE STUDY
Physical Analysis
Inventory the Common Property Components.
Assess the Current Condition of the Components.
Estimate the Remaining Lives of the Components.
Estimate the Repair or Replacement Cost of the Components.
Financial Analysis
Amount of Funds Presently Set Aside (Fund Status).
Funding Level at Which the Association Intends to Fund Reserves (Funding Plan).
Current and Projected Investment Earnings Rates.
Current and Projected Cost Inflation Rates.
Reserve Funding Plan Goals
Reserve Fund Calculation Methods
Straight-line Segregated Method.
Pooling Method.
Time Value of Money
Capital and Noncapital Pools
Frequency of Reserve Studies
309 DEBT AND OTHER LIABILITIES
Secured and Unsecured Debt
Unique Issues for Certain Types of CIRAs
Condominium Associations.
Homeowners' Associations.
Cooperatives.
Special Types of Debt Financing
Bond Financing.
SBA Loans.
Accounting and Disclosure Requirements for Debt
Interfund Transfers
Environmental Cleanup Costs
Federal Environmental Laws.
Authoritative Literature.
Capitalization of Environmental Cleanup Costs.
Capitalization of Asbestos Removal Costs.
Accruing Environmental Remediation Liabilities under SOP 96-1
Refundable Security Deposits
Other Liabilities
310 MEMBERS' EQUITY
Contributed Capital
Distributions of Capital
Common Stock
311 INCOME TAXES
Accounting for Income Taxes
Current Income Taxes
Calculating the Current Tax Provision.
Interest and Penalties.
Deferred Income Taxes
Types of Temporary Differences.
Calculating Deferred Taxes.
Tax Rates.
How FIN 48 Affects the Deferred Tax Provision.
When Should CIRAs Provide for Deferred Income Taxes?
Examples of Temporary and Permanent Differences.
Reporting Income Taxes in Financial Statements
Disclosures
CHAPTER 4: FINANCIAL STATEMENT PRESENTATION
400 GENERAL ACCOUNTING CONSIDERATIONS
Basis of Accounting
GAAP Requires the Accrual Basis.
Other Comprehensive Bases of Accounting.
Fund Accounting
Principal Funds.
Other Funds.
Using Nonfund Reporting.
Classified and Unclassified Balance Sheets
Comparative Financial Statements
401 BASIC FINANCIAL STATEMENTS
Financial Statement Titles
Balance Sheet
Presenting Interfund Transactions.
Cash Designated for Future Repairs and Replacements.
Statement of Revenues and Expenses
Statement of Comprehensive Income
Statement of Changes in Fund Balance
Statement of Changes in Shareholders' Equity
Comprehensive Income
What Is Comprehensive Income?
Are All CIRAs Required to Report Comprehensive Income?
Presentation Requirements.
Authors' Recommendation.
Statement of Cash Flows
Types of Cash Flows.
Classifying Cash Flows from Member Assessments.
Assessments for Specific Purposes.
Assessments Received in Advance.
Interfund Transactions.
Notes to Financial Statements
402 SUPPLEMENTARY INFORMATION
Additional Information in an Accountant-submitted Document
APPENDIX 4D: Sample Financial Statements--Timeshare Development
CHAPTER 5: INCOME TAXES
500 OVERVIEW OF TAX LAW FOR CIRAS
Tax Filing Options
Historical Perspective of the Taxation of CIRAs
Tax Posture Adopted in This Chapter
Complexity of Tax Laws
Preparer Penalties
Chapter Overview
501 TAX LAW PRINCIPLES COMMON TO ALL CIRAS
Definition of Gross Income
Prepaid Assessments
Agency Relationships
Contributions to the Capital of a Corporation
Factors to Consider in Assessing Capital Contributions.
Purpose of Assessment.
Advance Notice.
Accounted for as a Capital Contribution.
Funds Held for That Purpose.
Separate Bank Accounts.
Expended for Intended Purpose.
Increase Capital Account.
Example.
Special Assessments as Agency Relationships.
Consequences of Not Complying with IRS Regulations.
Amending Tax Returns Due to Significant Exposure.
Transfers between Reserve Funds and Operating Funds.
Litigation Settlements
Litigation Proceeds from Developers.
Damages Settlement Illustration.
Structured Settlements.
Designated Settlement Funds.
Earnings on Investment of Proceeds.
Basis in Assets Received from a Developer/Sponsor or Others
Assets Received from a Developer/Sponsor.
Assets Received from Others.
Basis in Assets Purchased with Association Funds
Capital Expenditures
Cooperative Association vs. Condominium and Homeowners' Association Capital Expenditure Treatment.
Difference in Treatment of Specific Transactions for Financial Reporting and Tax Purposes
502 FORM 1120-H--TAXATION UNDER IRC SECTION 528
Applicability of IRC Section 528
Substantially Residential Test.
60% Income Test.
90% Expenditure Test.
Lack of Private Benefit Test.
Exempt Function Activities
Determining Exempt Function Income.
Nonexempt Function Activities
Nonexempt Function Income.
Charging Expenses to Nonexempt Function Income.
Portland Golf Club v. Commissioner.
Utility Pass-throughs
Deductibility of Interest Expenses
Advantages and Disadvantages of Filing Form 1120-H
Authors' Recommendations.
Tax-planning Opportunities When Form 1120-H Is Filed.
Filing Form 1120-H
Revoking the 1120-H Election
503 FORM 1120--TAXATION UNDER IRC SECTION 277
Applicability of IRC Section 277
Condominium and Homeowners' Associations.
Cooperative Housing Corporations.
General Rules
Membership and Nonmembership Income
Membership Income.
Nonmembership Income.
Examples of Membership and Nonmembership Income.
Membership and Nonmembership Deductions
Allocating Expenses to Investment Income.
Allocating Expenses to Other Categories of Nonmembership Income.
Determining Net Income or Loss
Net Nonmembership Loss When No Profit Motive Exists.
Using Revenue Ruling 70-604 to Defer Tax on Net Membership Income
Basic Provisions.
Making the Election.
Authors' Recommendations
Authors' Recommendations Regarding Making the Election.
Applying Revenue Ruling 70-604 to Nonresidential Associations.
Applying Excess Membership Income to Replacement Funds.
Excess Membership Deductions
Net Nonmembership Income
Regular Tax.
Alternative Minimum Tax.
Net Nonmembership Losses
Net Operating Loss.
Capital Loss.
Advantages and Disadvantages of Filing Form 1120
Tax-planning Opportunities
Alternating Form 1120-H and Form 1120.
Use of the Revenue Ruling 70-604 Election to Reduce Taxes.
Risk Analysis with Association Income Tax Return Preparation
Form 1120-H.
Form 1120.
Operating as a Cooperative Organization
Preparing Form 1120
Amending a Form 1120 to Change to Form 1120-H
504 TAX-EXEMPT CIRAS
Homeowners' Associations under Section 501(c)(4)
"Gated" Associations.
Homeowners' Associations under Section 501(c)(7)
Applying for Recognition of Tax-exempt Status
Tax-exempt Cooperatives
Revocation of Exempt Status
Unrelated Business Income and Form 990-T
Special Considerations for Section 501(c)(7) Social Clubs.
505 TAX ISSUES UNIQUE TO COOPERATIVE HOUSING CORPORATIONS
506 MASTER ASSOCIATIONS
Residential or Nonresidential?
Filing Form 1120-H
Carryover of Excess Membership Income
507 TIMESHARE DEVELOPMENTS
508 COMMERCIAL ASSOCIATIONS
509 SPECIALIZED TAX SITUATIONS
Sale of Common Property
Condemnation of Common Property
Condemned and Replaced.
Condemned and Not Replaced.
Rental Pools
Rebates
Effect of Capital Assessments on Owner's Basis
Ancillary Operations
Form 1120-H.
Form 1120.
Form 990-T [Under 501(c)(7)].
Form 990-T [Under 501(c)(4)].
Other Tax Considerations.
Foreclosures and Abandonments
Disabled Access Credit
Deduction of Property Taxes by Members of Homeowners' Associations
Unincorporated Neighborhood Associations
Environmental Cleanup Costs
APPENDIX 5A: Illustrative Tax Returns and Calculation Worksheets
APPENDIX 5A-1: Form 1120-H Case Study on Computing CIRA Income Taxes
APPENDIX 5A-2: Form 1120 Case Study on Computing CIRA Income Taxes
APPENDIX 5A-3: Worksheet Comparing Form 1120-H to Form 1120 Based on Case Study
APPENDIX 5A-4: CIRA Tax Worksheet I--Form 1120-H
APPENDIX 5A-5: CIRA Tax Worksheet I--Form 1120
APPENDIX 5A-6: CIRA Tax Worksheet II--Form 1120-H
APPENDIX 5A-7: CIRA Tax Worksheet II--Form 1120
APPENDIX 5A-8: Worksheet Comparing Form 1120-H to Form 1120
APPENDIX 5A-9: Illustrative Form 7004
APPENDIX 5A-10: Illustrative Form 1120-C
APPENDIX 5B: Sample Resolutions and Client Letters
APPENDIX 5B-1: Association Resolution for Revenue Ruling 70-604 Election--Excess Income Applied to the Following Year's Assessments
APPENDIX 5B-2: Association Resolution for Revenue Ruling 70-604 Election--Excess Income Refunded to Members
APPENDIX 5C: Treatment of Specific Transactions for Financial Reporting and Tax Purposes
APPENDIX 5D: Selecting the Correct Tax Form
APPENDIX 5E: Checklist for Preparing Form 1120
CHAPTER 6: PRE-ENGAGEMENT ACTIVITIES AND AUDIT PLANNING
600 INTRODUCTION AND AUTHORITATIVE LITERATURE
Authoritative Literature
Pre-engagement Activities.
Preliminary Planning.
601 ENGAGEMENT ACCEPTANCE AND CONTINUANCE
Risk-based Perspective
Ability to Accept the Engagement
Independence
Nonattest Services.
Competency in the CIRA Industry.
Management Integrity
Outsourcing
Level of Service
602 DOCUMENTING THE ENGAGEMENT ACCEPTANCE OR RETENTION DECISION
Annual Evaluation for Continuing Engagement
603 ESTABLISHING THE TERMS OF THE ENGAGEMENT
Documenting the Terms of the Engagement
Early Communication with Those Charged with Governance
604 AUDIT PLANNING
Objectives of Audit Planning
Requesting Information from the CIRA
Risk Assessment Process
Procedures Performed.
Understanding Obtained.
Decisions and Judgments Made.
Summary of Risk Assessment Process.
Modifications Made to 2009 PPC Practice Aids
The Sequence of Audit Planning
Types of Risk Assessment Procedures
Nature, Timing, and Extent--General Considerations.
Gathering Other Information Needed to Identify Fraud Risks.
Using the Results of Risk Assessment Procedures Performed in Prior Periods.
Inquiries of Management and Others
Matters and Parties of Inquiry.
Fraud-related Inquiries.
Management.
Other Employees.
Documentation.
Preliminary Analytical Procedures
Observation and Inspection
Documentation.
Discussion among the Engagement Team
Matters to be Discussed.
Effect on Significant Audit Areas.
Who Should Attend the Discussion?
When Should the Discussion Occur?
Other Matters That May Be Discussed.
Documentation of the Discussion.
605 UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT
Components of the Understanding
Documentation.
Purpose of This Section.
Industry, Regulatory, and Other External Factors
AICPA Audit Risk Alert.
Possible Risk Assessment Procedures and Factors to Consider.
Nature of the Entity
Organizational Structure and Personnel.
Operating Characteristics.
Governing Documents and Similar Documents.
Related-party Transactions.
Risk Assessment Procedures and Factors to Consider.
Objectives, Strategies, and Related Business Risks
Measurement and Review of the Entity's Financial Performance
Risk Assessment Procedures and Factors to Consider.
Selection and Application of Accounting Policies
Risk Assessment Procedures.
Fraud Risk Factors
Examples of Fraud Risk Factors.
606 THE UNDERSTANDING OF INTERNAL CONTROL
Components of Internal Control
Nature of the Auditor's Understanding
Extent of the Auditor's Understanding
How Are the Results of the Understanding Used?
Effect of Information Technology (IT) on Internal Control
Benefits and Risks of IT.
Considering Whether Specialized IT Skills Are Needed to Understand Internal Control.
Documentation
Control Environment
Documentation of the Control Environment.
Risk Assessment
Documentation of the CIRA's Risk Assessment Process.
Information and Communication
Financial Reporting System.
Communication.
Monitoring
Consideration of Internal Audit Function.
Documentation of the CIRA's Monitoring Process.
Control Activities
Understanding Controls Related to Significant Risks
Documentation
Internal Control and Service Organizations
607 AUDIT PLANNING DECISIONS AND JUDGMENTS
Determining Materiality at the Financial Statement Level
Quantifying Planning Materiality.
Desirability of a Single Benchmark.
Recommended Benchmark.
Selecting a Percentage.
Determining Materiality for Particular Items of Lesser Amounts
Determining Tolerable Misstatement
Determining Individually Significant Dollar Items.
Assessing Risks of Material Misstatement at the Financial Statement Level
The Audit Risk Model
Risk of Material Misstatement
Relevant Assertions
Assessing the Risk of Material Misstatement at the Relevant Assertion Level
Determining Significant Audit Areas.
Documenting Audit Risk Considerations.
Establishing an Overall Audit Strategy
Considerations for Small CIRAs.
Timing of Developing the Audit Strategy.
Communicating with Those Charged with Governance.
Documentation.
608 USE OF A SPECIALIST
609 AUDIT SAMPLING
Determining Audit Sampling Applications
Sampling Approaches and Methods
Balance Testing.
Transaction Testing.
Designing Tests of Transactions Using Audit Sampling
Planning.
Sample Selection.
Evaluation.
Documentation of Transaction Testing
610 DETAILED AUDIT PLANS AND WORKPAPERS--ORGANIZATION AND STRUCTURE
Determining the Audit Approach
Limited Procedures Approach.
Basic and Extended Approaches (Core).
Specified Risk Audit Programs.
Documenting the Response.
Audit Documentation (Workpapers)
Support for Auditor's Report.
Other Purposes of Workpapers.
Basic Requirements for Content.
Documenting Specific Items Tested and Other Procedures.
Documenting the Identification of Preparer and Reviewer.
Documenting Significant Findings or Issues.
Documenting Revisions after the Date of the Auditor's Report.
Audit Documentation Recommendations.
Additional Purposes of Workpapers.
Workpaper Indexing.
611 SPECIAL PLANNING CONSIDERATIONS IN INITIAL ENGAGEMENTS
Reasonableness of Opening Balances
Nature of Opening Balances.
Avoid Overauditing.
Consistency.
Audit of a Previously Unaudited CIRA
Previous Accounting Services.
No Previous Accounting or Auditing Services.
A New CIRA.
Audit of a Previously Audited CIRA
Audits of Financial Statements Previously Audited (Reaudits)
Communications with the Predecessor Auditor.
Reliance on the Work of the Predecessor.
Effect on the Successor's Audit Report.
Providing Access to Workpapers in a Reaudit Situation.
Unique Considerations for CIRA Engagements.
612 ENGAGEMENT ADMINISTRATION FORMS AND AUDIT PROGRAMS
APPENDIX 6A: Understanding the Entity and Identifying Risks
CHAPTER 7: PERFORMING SUBSTANTIVE PROCEDURES
700 INTRODUCTION
Introduction
Authoritative Literature
Substantive Procedures Required in Every Audit
Considering the Sufficiency and Appropriateness of Audit Evidence.
Choosing between Analytical Procedures and Substantive Tests of Details
701 TESTS OF DETAILS
Confusion about Tests of Details
Required Documentation
702 SUBSTANTIVE ANALYTICAL PROCEDURES
What Are Analytical Procedures?
Designing Analytical Procedures
Precision of Expectation.
Evaluating the Results of Analytical Procedures.
Limitations of Analytical Procedures
Required Documentation
Practice Aids
703 PERFORMING SUBSTANTIVE AUDIT PROCEDURES FOR CIRAS
Cash and Cash Equivalents
Confirmation of Accounts.
Restrictions and Uninsured Balances.
Commingled Cash.
Single Brokerage Accounts.
Practice Aids.
Investments and Derivatives
Evaluating Fair Value
Use of a Custodian.
Prepaids, Deferred Charges, and Other Assets
Receivables
Confirmation of Assessments
Examining Subsequent Cash Collections.
Collectibility.
Developer Receivables.
Special Assessment Receivables.
Assessments Received in Advance.
Property and Equipment
Interior Furnishings.
Accounts Payable, Accrued Liabilities, and Other Liabilities
Confirmation of Accounts Payable.
Search for Unrecorded Liabilities.
Refundable Security Deposits.
Debt and Related Liabilities
Cooperative Mortgages.
Governing Document and Loan Restrictions.
Small Business Administration (SBA) Loans.
Loan Fees.
Income Taxes
Equity
Revenues, Operating Expenses, and Major Repair and Replacement Expenditures
Revenues.
Operating Expenses.
Special Considerations--Subsidy Agreements
Subsidy Agreement Duration.
Operating Subsidy.
Reserve Subsidy.
Audit Procedures.
Financial Statement Considerations.
Special Considerations--Ancillary Operations
Internal Control Considerations.
Major Repairs and Replacements.
704 SPECIAL CONSIDERATIONS IN INITIAL AUDITS--TRANSFER OF CIRA CONTROL TO PROPERTY OWNERS
Assessment Income
Developer Receivables
Common Areas
Expenses
Contracts
705 SPECIAL CONSIDERATIONS--INITIAL AUDITS WITH A PREDECESSOR AUDITOR
706 SPECIAL CONSIDERATIONS--MANAGEMENT COMPANY TRANSITION AUDIT
Assessment Income
Cash
Expenses
General Ledger
707 SPECIAL CONSIDERATIONS--OTHER SPECIAL AUDITS OR ATTEST ENGAGEMENTS
General Understanding
Income and Expense
General Ledger
CHAPTER 8: CONCLUDING THE AUDIT
800 INTRODUCTION
801 COMMITMENTS AND CONTINGENCIES
Audit Procedures
Legal Representation Letter
Content of the Letter.
Evaluating Lawyers' Responses.
Environmental Remediation Liabilities
Audit Procedures.
Auditing the Estimated Liability.
Auditing Potential Recoveries.
Mold.
Risks and Uncertainties
Nature of Operations.
Use of Estimates.
Certain Significant Estimates.
Current Vulnerability Resulting from Certain Concentrations.
Wording the Disclosure.
Reporting Issues.
802 ACCOUNTING ESTIMATES AND FAIR VALUE
Accounting Estimates
Fair Value Measurements and Disclosures
Identifying Financial Instruments of Nonpublic Entities
Disclosure Requirements
Auditing Fair Value Disclosures
803 SUBSEQUENT EVENTS
Timing
Subsequent Events Occurring After the Date of the Report.
804 RELATED PARTIES
Audit Procedures
Related-Party Transactions and Fraud.
Disclosures
805 GOING CONCERN CONSIDERATIONS
Conditions and Events
Audit Procedures
Documentation Requirements
Practice Aids
806 MANAGEMENT REPRESENTATION LETTER
Content of the Letter
Unique CIRA Representations.
Audit Adjustments
Materiality
Signatures and Date on the Letter
Periods Covered by the Letter
Illustrative Letter
Updating Letters.
807 CONSIDERING THE ACCUMULATED RESULTS OF AUDIT PROCEDURES
Reevaluating Risk Assessments
Evaluating the Existence of Fraud
Fraud Risk Assessment Is a Cumulative Process.
Required Procedures.
Evaluating Significant Unusual Transactions
Considering the Application of Significant Accounting Principles for Bias
Documentation Requirements
808 ANALYTICAL PROCEDURES
Purpose of Analytical Procedures
809 REVIEW OF WORKPAPERS
Tax Department Review
Timing of Review of Workpapers
Review Checklists
810 SUMMARIZATION AND EVALUATION
Categories for Evaluation
Audit Differences
Known and Likely Misstatements.
Communication of Misstatements to Management.
Evaluating Audit Differences
Trivial Misstatements.
Evaluating Estimates.
Different Levels for Different Amounts, Subtotals, or Totals.
Overall Evaluation.
Evaluating the Existence of Fraud
Documentation Requirements
Summary of Audit Differences.
Evaluation of Overall Materiality
811 DRAFTING FINANCIAL STATEMENTS AND THE AUDITOR'S REPORT
Financial Statements
Notes to the Financial Statements
Auditor's Reports
Note Disclosure on Funding Future Major Repairs and Replacements
Comparative Financial Statements
Additional Information Accompanying the Financial Statements
Proposed SAS on Additional Information Accompanying the Basic Financial Statements.
Comparisons of Budgeted and Actual Information
Budgets for Expired Periods.
Budgets for Prospective Periods.
Difference between Auditor-submitted Documents and Client-prepared Documents
Proposed SAS on Other Information in Documents Containing Audited Financial Statements.
Required Supplementary Information on Future Major Repairs and Replacements
Applying Limited Procedures.
Auditors' Reports.
Proposed SAS on Required Supplementary Information.
Required Supplementary Information Presented in a Note to the Financial Statements
CIRAs Involved with HUD Reporting
Other Information in Electronic Sites Containing Audited Financial Statements
812 CLIENT COMMUNICATIONS
Communicating Internal Control Related Matters Under SAS No. 115
Identifying Control Deficiencies.
Evaluating Control Deficiencies.
Significant Deficiency.
Material Weakness.
Examples of Deficiencies.
Factors to Consider When Evaluating Control Deficiencies.
Can the Auditor Prepare the Financial Statements?
Auditor Identifies Misstatements in the Financial Statements.
Aggregation of Deficiencies.
Mitigating Effects of Compensating Controls.
Redundant Controls.
Prudent Official Assessment.
Control Deficiency Worksheets.
Communication Requirements.
Reporting When There Are No Significant Deficiencies.
Reporting When There Are No Material Weaknesses.
Illustrative Communications.
Management Letters.
Communication with Those Charged with Governance
Responsibilities Under GAAS.
Planned Scope and Timing of Audit.
Significant Audit Findings.
Documentation of Communications.
Fraud and Illegal Acts
Fair Housing Amendments Act of 1988 (Public Law 100-430).
Communication about Fraud.
Communication about the CIRA's Ability to Continue as a Going Concern
813 ENGAGEMENT SUMMARY MEMORANDUM
814 ENGAGEMENT QUALITY CONTROL REVIEW
Establishing Criteria for Engagement Quality Control Reviews
815 AUDIT PROGRAM
APPENDIX 8A: Sample Auditors' Reports
APPENDIX 8A-1: Standard Report--GAAP Basis Financial Statements for a Single Year (Report Drafting Illustration)
APPENDIX 8A-2: Standard Report on Comparative Financial Statements--GAAP Basis Financial Statements (Report Drafting Illustration)
APPENDIX 8A-3: Standard Report on Financial Statements for a Single Year--Emphasis of a Matter: Auditors' Responsibility for Replacement Fund Information (Report Drafting Illustration)
APPENDIX 8A-4: Modified Report on Financial Statements for a Single Year; Going Concern Uncertainty (Report Drafting Illustration)
APPENDIX 8A-5: Comparative Financial Statements--Current Period Audited; Prior Period Reviewed (Report Drafting Illustration)
APPENDIX 8A-7: Unqualified Opinion on Additional Information in an Auditor-submitted Document--Separate Report (Report Drafting Illustration)
APPENDIX 8A-8: Unqualified Opinion on Additional Information in an Auditor-submitted Document--Separate Paragraph of Auditors' Standard Report (Report Drafting Illustration)
APPENDIX 8A-9: Disclaimer of Opinion on Part of the Additional Information in an Auditor-submitted Document--Separate Report (Report Drafting Illustration)
APPENDIX 8A-10: Disclaimer of Opinion on All Additional Information in an Auditor-submitted Document--Separate Report (Report Drafting Illustration)
APPENDIX 8A-11: Disclaimer of Opinion on Required Supplementary Information about Future Major Repairs and Replacements in an Auditor-submitted Document--Separate Report (Report Drafting Illustration)
APPENDIX 8A-12: Disclaimer of Opinion on Required Supplementary Information about Future Major Repairs and Replacements in an Auditor-submitted Document--Separate Paragraph of Auditors' Standard Report (Report Drafting Illustration)
APPENDIX 8A-13: Unqualified Opinion on Additional Information and Disclaimer of Opinion on Required Supplementary Information in an Auditor-submitted Document--Separate Report (Report Drafting Illustration)
APPENDIX 8A-14: Unqualified Opinion on Basic Financial Statements; Unqualified Opinion on Additional Information and Disclaimer of Opinion on Required Supplementary Information in an Auditor-submitted Document--Separate Paragraphs of Auditors' Report
APPENDIX 8A-15: Omission of Required Supplementary Information about Future Major Repairs and Replacements (Report Drafting Illustration)
APPENDIX 8A-16: Material Departure from Guidelines for Required Supplementary Information about Future Major Repairs and Replacements (Report Drafting Illustration)
APPENDIX 8A-17: Prescribed Procedures for Required Supplementary Information about Future Major Repairs and Replacements Not Completed (Report Drafting Illustration)
APPENDIX 8A-18: Unresolved Doubts about Adherence to AICPA Guidelines for Required Supplementary Information about Future Major Repairs and Replacements (Report Drafting Illustration)
APPENDIX 8A-19: Disclaimer of Opinion on Required Supplementary Information in a Client-prepared Document (Report Drafting Illustration)
APPENDIX 8B: Management Letters
APPENDIX 8B-1: Introduction to a Management Letter (Report Drafting Illustration)
APPENDIX 8B-2: Management Letter Points
CHAPTER 9: COMPILATION AND REVIEW ENGAGEMENTS
900 INTRODUCTION
What Are Compilation and Review Engagements?
Organization of This Chapter
901 AUTHORITATIVE LITERATURE
Accounting Literature
Generally Accepted Accounting Principles.
Compilation and Review Literature
Engagement Conduct Standards
Quality Control Standards
902 PRE-ENGAGEMENT AND PLANNING ACTIVITIES
Evaluating Engagement Acceptance and Continuance
Management's Integrity and Reputation.
Communication with Predecessor Accountant.
Evaluating Risk Due to the Nature of the Engagement.
Evaluating Firm Competence, Capabilities, and Resources.
Compliance with Legal and Ethical Requirements.
Continuing Clients.
Engagement Acceptance Form.
Evaluating the Level of Service to Be Performed
Level of Service Required.
Needs of Users of the Financial Statements.
Cost of the Engagement.
Independence.
Changes in the Level of Service.
Establishing Engagement Terms and Completing an Engagement Letter
Gaining Knowledge of the Client and Its Industry
Client Information Form.
903 COMPILATION PROCEDURES
Compilation Performance Requirements
Other Accounting Services.
Actions Necessary When the Information Is Incorrect, Incomplete, or Otherwise Unsatisfactory.
Reading the Compiled Financial Statements.
Management-use-only Financial Statements
Checklists and Practice Aids
904 REVIEW PROCEDURES
Review Performance Requirements
Inquiries and Analytical Procedures.
Developing Expectations.
Documenting Expectations.
Appropriate Workpaper Documentation.
Use of Representation Letters.
Checklists and Practice Aids
905 WRAP-UP AND OTHER ENGAGEMENT ACTIVITIES
Documentation of Procedures
Disclosure Checklist.
Procedures, Review, and Approval Forms.
Consultation, Differences of Opinion, and Engagement Withdrawal Documentation Form.
Required and Suggested Workpapers for a Compilation of Third-party-use Financial Statements
Required and Suggested Workpapers for a Review Engagement
Filing Instructions
Subsequent Discovery of Facts Existing at Date of Report
Communication of Fraud or Illegal Acts
Communication of Internal Control Related Matters
906 REPORTING ON COMPILED OR REVIEWED FINANCIAL STATEMENTS
Standard Reports
Required Elements of a Compilation Report.
Required Elements of a Review Report.
Reporting Checklists.
Illustrative Reports.
Reference to Country of Origin.
Signature.
Reporting on Financial Statements That Omit Substantially All Disclosures
Reporting When the Statement of Cash Flows Is Omitted
Reporting Comprehensive Income
Reporting When Not Independent
Reports on Supplementary Information
Required Supplementary Information on Future Major Repairs and Replacements.
Statement of Position 93-5.
Compiling Required Supplementary Information.
Review Assurance.
Responsibilities When Required Supplementary Information Is Omitted.
APPENDIX 9A: Sample Compilation Reports
APPENDIX 9A-1: Standard Compilation Report--GAAP Basis Financial Statements for a Single Year (Report Drafting Illustration)
APPENDIX 9A-2: Standard Compilation Report--GAAP Basis Financial Statements for a Single Year with Compiled Supplementary Information (Report Drafting Illustration)
APPENDIX 9A-3: Standard Compilation Report--GAAP Basis Financial Statements for a Single Year with Compiled Required Supplementary Information (Report Drafting Illustration)
APPENDIX 9A-4: Standard Compilation Report--GAAP Basis Financial Statements for a Single Year with Required Supplementary Information Omitted (Report Drafting Illustration)
APPENDIX 9A-5: Compilation Report--Substantially All Disclosures Required by GAAP and the Required Supplementary Information Omitted (Report Drafting Illustration)
APPENDIX 9B: Sample Review Reports
APPENDIX 9B-1: Standard Review Report--GAAP Basis Financial Statements for a Single Year (Report Drafting Illustration)
APPENDIX 9B-2: Comparative Financial Statements; Current Year Reviewed, Prior Year Audited (Report Drafting Illustration)
APPENDIX 9B-4: Standard Review Report--GAAP Basis Financial Statements for a Single Year with Reviewed Supplementary Information (Report Drafting Illustration)
APPENDIX 9B-5: Review Report on Part of the Supplementary Information; Compilation Report on the Remainder--Separate Report (Report Drafting Illustration)
APPENDIX 9B-7: Standard Review Report--GAAP Basis Financial Statements for a Single Year with Compiled Supplementary Information (Report Drafting Illustration)
APPENDIX 9B-8: Standard Review Report--GAAP Basis Financial Statements for a Single Year with Compiled Required Supplementary Information (Report Drafting Illustration)
APPENDIX 9B-9: Standard Review Report--GAAP Basis Financial Statements for a Single Year with Reviewed Supplementary Information and Compiled Required Supplementary Information (Report Drafting Illustration)
APPENDIX 9B-10: Standard Review Report--GAAP Basis Financial Statements for a Single Year with Required Supplementary Information Omitted (Report Drafting Illustration)
APPENDIX 9B-11: Standard Review Report--GAAP Basis Financial Statements for a Single Year with Required Supplementary Information That Departs from AICPA Guidelines (Report Drafting Illustration)
CHAPTER 10: TIMESHARE DEVELOPMENTS
1000 OVERVIEW
Right-to-use Ownership
Fee Ownership
Ownership of Common Property
Membership in a CIRA
Developer Involvement
Other Types of Ownership
Timeshare Cooperatives.
Fractional Interests.
Vacation Clubs.
State Legislation
Other Unique Aspects of Timeshare Developments
Exchange Companies.
Point Systems.
Biennial Use.
Governing Documents
Overview of the Chapter
1001 OPERATIONS
Budgets
Approval Process.
Types of Budgets.
Operating Budget.
Budget Format.
Expense Allocation.
Replacement Reserve Budget.
Billing and Collecting Assessments
Billing.
Collecting.
Delinquencies.
Cash Management
Investment Policy.
1002 ACCOUNTING CONSIDERATIONS
Capitalization of Interior Furnishings
Current Practice.
Auditors' Responsibilities.
Assessments Billed in Advance
Real Estate Taxes
Unit Weeks Owned by the Association
1003 TAX CONSIDERATIONS
Filing Form 1120-H
Special Considerations When Filing Form 1120
Prepaid Assessments.
Assessments for Reserves.
Excess Assessments.
Tax Planning Suggestions
Excess Assessments.
Prepaid Assessments.
Reserves.
Applicability to Other CIRAs
Information Returns and Tax Withholding on Units Rented
CHAPTER 11: COOPERATIVE HOUSING CORPORATIONS
1100 OVERVIEW
Overview of Cooperatives
Condops.
Characteristics of Cooperatives
Governing Documents
Type of Corporation
Taxation of Cooperatives
Overview of This Chapter
1101 TAX BENEFITS AVAILABLE TO TENANT-SHAREHOLDERS
IRC Section 216 Qualifications
Corporate Form.
One Class of Stock Outstanding.
Occupancy of Units for Dwelling Purposes.
80% Gross Income Test.
Distributions.
Annual Determination
Deduction of Interest and Real Estate Taxes
Deductible Amounts.
Proportionate Shares.
Illustrative Calculation.
Providing Annual Information to Tenant-shareholders
Property Tax Refunds
Other Tax Benefits
1102 ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION CONSIDERATIONS
Capitalizing and Valuing Common Property
Liens on the Cooperative's Property
Disclosures of Required Supplementary Information
Common Stock Disclosures
NCB Patronage Dividends.
Nonfund Reporting
Monthly Assessments
Reacquisition and Subsequent Reissuance of Shares of the Cooperative Housing Corporation
APPENDIX 12A-5: Florida Topical Index to Financial Related Laws and Rules--Condominium Associations
APPENDIX 12A-6: Florida Topical Index to Financial Related Laws and Rules--Timeshare Associations
APPENDIX 12B: Index to the California Davis-Stirling Common Interest Development Act (Civil Code Sections 1350-1378)
APPENDIX 12C: Highlights of the California Davis-Stirling Common Interest Development Act (Civil Code Sections 1350-1378)
APPENDIX 12D: California Vacation Ownership and Time-share Act of 2004 Code Section Excerpts of the Part 2, Chapter 2 Relevant to Timeshare Owners' Associations
APPENDIX 12E: California Taxation
APPENDIX 12F: Hawaii Topical Index to Financial Related Laws and Rules
APPENDIX 12F-1: Hawaii Topical Index to Financial Related Laws and Rules--Condominium Associations
APPENDIX 12F-2: Hawaii Topical Index to Financial Related Laws and Rules--Timeshare Associations
APPENDIX 12G: State Laws for Reserve Funds
FIRM POLICIES (HOA-FP)
HOA-FP-1: Audit Team Members
CHECKLISTS AND PRACTICE AIDS (HOA-CX)
Application of Practice Aids to Engagements
HOA-CX-1: Planning and Preliminary Engagement Activities
HOA-CX-1.1: Engagement Acceptance Form
HOA-CX-1.2: Engagement Continuance Form
HOA-CX-1.3: ET Interpretation 101-3 Documentation Form
HOA-CX-2: Financial Statement Materiality Worksheet for Planning Purposes
HOA-CX-3: Understanding the Entity
HOA-CX-3.1: Understanding the Entity and Identifying Risks
HOA-CX-3.2: Engagement Team Discussion
HOA-CX-3.3: Fraud Risk Inquiries Form
HOA-CX-3.4: Audit Inquiries Summary Form
HOA-CX-4: Understanding Internal Control
HOA-CX-4.1: Understanding the Design and Implementation of Internal Control
HOA-CX-4.2: Financial Reporting System Documentation Form
HOA-CX-4.2.1: Financial Reporting System Documentation Form--Significant Transaction Classes
HOA-CX-4.2.2: Financial Reporting System Documentation Form--IT Environment and General Computer Controls
HOA-CX-4.3: Walkthrough Documentation Table
HOA-CX-5: Activity and Entity-level Control Forms
HOA-CX-5.1: Entity-level Control Form for Control Environment
HOA-CX-5.2: Entity-level Control Form for Risk Assessment
HOA-CX-5.3: Entity-level Control Form for Information and Communication
HOA-CX-5.4: Entity-level Control Form for Monitoring
HOA-CX-5.5: Control Activities Form for General Computer Controls
HOA-CX-5.6: Control Activities Form for Financial Close and Reporting
HOA-CX-5.7: Control Activities Form for Cash
HOA-CX-5.8: Control Activities Form for Receivables and Revenues
HOA-CX-5.9: Control Activities Form for Property and Equipment
HOA-CX-5.10: Control Activities Form for Investments and Derivatives
HOA-CX-5.11: Control Activities Form for Other Assets
HOA-CX-5.12: Control Activities Form for Accounts Payable and Other Liabilities
HOA-CX-5.13: Control Activities Form for Debt and Related Liabilities
HOA-CX-5.14: Control Activities Form for Income Taxes
HOA-CX-5.15: Control Activities Form for Equity
HOA-CX-5.16: Control Activities Form for Revenues, Operating Expenses, and Major Repairs and Replacements
HOA-CX-5.17: Common Control Objectives by Audit Area and Transaction Class
HOA-CX-6: Identifying Risk
HOA-CX-6.1: Entity Risk Factors
HOA-CX-6.2: Fraud Risk Factors
HOA-CX-7: Risk Assessment
HOA-CX-7.1: Risk Assessment Summary Form
HOA-CX-7.2: Inherent Risk Assessment Form
HOA-CX-8: Planning Substantive Procedures
HOA-CX-8.1: Planning Worksheet to Determine Extent of Substantive Procedures
HOA-CX-8.2: Sampling Planning and Evaluation Form--Substantive Procedures
HOA-CX-8.3: Sampling Worksheet for Testing Account Coding and Classifications
HOA-CX-17.4: Confirmation and Correspondence Control
HOA-CX-17.5: Checklist of Records Requested from the CIRA
CONFIRMATION AND CORRESPONDENCE LETTERS (HOA-CL)
HOA-CL-1: Engagement Letters
HOA-CL-1.1: Audit Engagement Letter
HOA-CL-1.2: Engagement Letter Change Order Form
HOA-CL-1.3: Resignation Letter--Drafting Form
HOA-CL-2: Legal Letters
HOA-CL-2.1: Request for Legal Representation--Lawyer Is Requested to Provide Information
HOA-CL-2.2: Request for Legal Representation--Lawyer Is Requested to Confirm Information Provided by Client
HOA-CL-3: Management Representations
HOA-CL-3.1: Management Representation Letter
HOA-CL-3.2: Management Representation Letter When the Current Year Financial Statements Have Been Audited and the Prior Year Financial Statements Have Been Reviewed
HOA-CL-3.3: Summary of Audit Differences
HOA-CL-3.4: Updating Management Representation Letter
HOA-CL-4: Internal Control Communications
HOA-CL-4.1: Communication of Significant Deficiencies
HOA-CL-4.2: Communication of Significant Deficiencies and Material Weaknesses
HOA-CL-4.3: Communication of No Material Weaknesses in a Separate Report
HOA-CL-5: Communication with Those Charged with Governance under SAS No. 114
HOA-CL-5.1: Communication with Those Charged with Governance during Planning
HOA-CL-5.2: Communication with Those Charged with Governance at or Near the Conclusion of the Audit
HOA-CL-6: Cash Confirmations and Letters
HOA-CL-6.1: Standard Form to Confirm Account Balance Information with Financial Institutions
HOA-CL-6.2: Request for Subsequent Bank Statements
HOA-CL-6.3: Receipt for Cash Counted by Auditor
HOA-CL-6.4: Confirmation of Authorized Signatories
HOA-CL-8: Investments and Securities Confirmations and Letters
HOA-CL-8.1: Receipt for Securities Counted by Auditor
HOA-CL-8.2: Confirmation of Securities Held by Brokers
HOA-CL-8.3: Confirmation of Securities Held by a Third Party
HOA-CL-9: Not Used
HOA-CL-10: Payables and Debt Confirmations and Letters
HOA-CL-10.1: Accounts Payable Confirmation
HOA-CL-10.2: Note Payable Confirmation
HOA-CL-10.3: Confirmation of Debt for Which No Written Loan Agreement Exists
HOA-CL-10.4: Confirmation of Mortgage Debt
HOA-CL-10.5: Confirmation of Compensating Balances
HOA-CL-10.6: Confirmation of Line of Credit
HOA-CL-10.7: Confirmation of Contingent Liabilities with Financial Institutions
HOA-CL-11: Benefit Plan Confirmations and Letters
HOA-CL-11.1: Request for Defined Benefit Plan Information
HOA-CL-11.2: Request for Plan Asset Information--Defined Benefit Pension and Other Postretirement Benefit Plans
HOA-CL-12: Other Confirmations and Letters
HOA-CL-12.1: Standard Confirmation Inquiry for Life Insurance Policies
HOA-CL-12.2: Confirmation of Insurance Coverage (Other Than Life Insurance)
HOA-CL-12.3: Confirmation of Lease Agreement
HOA-CL-12.4: Related Party Confirmation
HOA-CL-12.5: Data Request Letter
HOA-CL-13: Predecessor/Successor Communications
HOA-CL-13.1: Request for Predecessor Auditor to Release Information to Successor Auditor
HOA-CL-13.2: Letter Granting Successor Auditors Access to Workpapers
HOA-CL-13.3: Client Consent and Acknowledgment Letter
HOA-CL-13.4: Communication with Predecessor Auditor Prior to Final Engagement Acceptance
HOA-CL-13.5: Communication with Predecessor Auditor Prior to Engagement Proposal
HOA-CL-13.6: Request for Representation from Successor Auditor to Predecessor Auditor--Predecessor's Report Is Reissued
HOA-CL-14: Principal and Other Auditor Communications
HOA-CL-14.1: Request for Representations from Other Auditor Who Audits the Financial Statements of a Subsidiary, Division, or Branch
HOA-CL-14.2: Request for Representations from Other Auditor Who Performs Audit Procedures on Certain Elements, Accounts, or Items in Financial Statements
HOA-CL-14.3: Inquiry of Principal Auditor by Other Auditor
HOA-CL-14.4: Principal Auditor's Response to Inquiries from Other Auditor
HOA-CL-14.5: Letter from Principal Auditor to Other Auditors Regarding Related Parties
AUDIT PROGRAMS--CORE (HOA-AP)
HOA-AP-1: Audit Program for General Planning Procedures
Other General Planning Procedures
HOA-AP-2: Audit Program for General Auditing and Completion Procedures
Other General Auditing and Completion Procedures
HOA-AP-3: Audit Program for Cash (Including Interest-bearing Deposits)
HOA-AP-4: Audit Program for Receivables
Other Audit Procedures for Receivables
HOA-AP-5: Not Used
HOA-AP-6: Not Used
HOA-AP-7: Audit Program for Property and Equipment
Other Audit Procedures for Property and Equipment
HOA-AP-8: Audit Program for Investments and Derivatives
Other Audit Procedures for Investments and Derivatives
HOA-AP-9: Audit Program for Other Assets
Other Audit Procedures for Other Assets
HOA-AP-10: Audit Program for Accounts Payable and Other Liabilities
Other Audit Procedures for Accounts Payable and Other Liabilities
HOA-AP-11: Audit Program for Debt and Related Liabilities
HOA-AP-12: Audit Program for Income Taxes
Other Audit Procedures for Income Taxes
HOA-AP-13: Audit Program for Equity
HOA-AP-14: Audit Program for Revenue, Operating Expenses, and Major Repair and Replacement Expenditures
Other Audit Procedures for Revenue, Operating Expenses, and Major Repair and Replacement Expenditures
AUDIT PROGRAMS--SPECIFIED RISK (HOA-AP-S)
HOA-AP-1-S: Audit Program for General Planning Procedures--Specified Risk
HOA-AP-2-S: Audit Program for General Auditing and Completion Procedures--Specified Risk
HOA-AP-3-S: Audit Program for Cash (Including Interest-bearing Deposits)--Specified Risk
HOA-AP-4-S: Audit Program for Receivables--Specified Risk
HOA-AP-5-S: (Not Used)
HOA-AP-6-S: (Not Used)
HOA-AP-7-S: Audit Program for Property and Equipment--Specified Risk
HOA-AP-8-S: Audit Program for Investments and Derivatives--Specified Risk
HOA-AP-9-S: Audit Program for Other Assets--Specified Risk
HOA-AP-10-S: Audit Program for Accounts Payable and Other Liabilities--Specified Risk
HOA-AP-11-S: Audit Program for Debt and Related Liabilities--Specified Risk
HOA-AP-12-S: Audit Program for Income Taxes--Specified Risk
HOA-AP-13-S: Audit Program for Equity--Specified Risk
HOA-AP-14-S: Audit Program for Revenue, Operating Expenses, and Major Repair and Replacement Expenditures--Specified Risk
INITIAL AUDIT PROGRAMS (HOA-IA)
HOA-IA-1: Additional General Planning Procedures for an Initial Audit
HOA-IA-2: Additional General Auditing and Completion Procedures for an Initial Audit
HOA-IA-3: Additional Audit Procedures for Cash (Including Interest-bearing Deposits) Beginning Balance in Initial Audit
HOA-IA-4: Additional Audit Procedures for Receivables Beginning Balance in Initial Audit
HOA-IA-5: Not Used
HOA-IA-6: Not Used
HOA-IA-7: Additional Audit Procedures for Property and Equipment Beginning Balance in Initial Audit
HOA-IA-8: Additional Audit Procedures for Investments and Derivatives Beginning Balance in Initial Audit
HOA-IA-9: Additional Audit Procedures for Other Assets Beginning Balance in Initial Audit
HOA-IA-10: Additional Audit Procedures for Accounts Payable and Other Liabilities Beginning Balance in Initial Audit
HOA-IA-11: Additional Audit Procedures for Debt and Related Liabilities Beginning Balance in Initial Audit
HOA-IA-12: Additional Audit Procedures for Income Taxes Beginning Balance in Initial Audit
HOA-IA-13: Additional Audit Procedures for Equity Beginning Balance in Initial Audit
CIRA COMPILATION AND REVIEW PRACTICE AIDS (HOA-CR)
HOA-CR-1: Engagement Acceptance Form--Compilation or Review
HOA-CR-2: Checklist for a Step-down Engagement--(Audit to Review or Compilation/Review to Compilation)
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INTRODUCTORY MATERIAL
PREFACE
