HOA Audit Specialists — Virginia · Maryland · DC

    HOA & Condominium Association Audit Services — DC Metro Area

    An HOA audit is an independent CPA examination of a homeowners or condominium association's financial statements, including reserve funds, assessments and operating expenses. Governing documents, state statutes and lenders often require an annual audit or review. Your Virtual CPA performs HOA audits, reviews and compilations for associations across Virginia, Maryland and Washington DC.

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    HOA Audit Requirements by State

    Audit requirements vary by state and are further defined by your association's governing documents. Always verify your specific requirements with your CPA or HOA attorney.

    Virginia

    • No blanket statutory audit mandate for every association
    • POA Act (§ 55.1-1800 et seq.) and Condominium Act (§ 55.1-1900 et seq.): books, records and member access to financial information
    • Audit or review level usually set by the declaration, bylaws, lender or insurer

    Maryland

    • Condominium Act (Real Prop. § 11-116): owners of 5% of units may require an independent CPA audit, at most once every 12 months
    • HOA Act (Real Prop. § 11B-112): records access; audit or review level set by governing documents
    • Reserve studies required and updated at least every 5 years (§§ 11-109.4, 11B-112.3)

    Washington DC

    • D.C. Condominium Act (D.C. Code § 42-1901.01 et seq.) governs DC condominiums
    • Audit or review requirements generally come from the declaration and bylaws
    • Lenders and insurers may require audited or reviewed statements; confirm with counsel

    HOA & Condo Audit Requirements: Virginia, Maryland & DC

    State-specific requirements for homeowner and condominium associations

    FeatureVirginiaMarylandWashington DC
    Governing LawVa. Code § 55.1-1800 / 55.1-1900 et seq.Md. Real Prop. Titles 11 and 11BD.C. Code § 42-1901.01 et seq.
    Statutory audit triggerNone across the boardCondo: 5% of unit owners may require (§ 11-116)Set by governing documents
    Review AcceptedIf governing documents allowIf governing documents allowIf governing documents allow
    Compilation OnlyIf governing documents allowIf governing documents allowIf governing documents allow
    Fannie Mae/Freddie MacAudit may be requiredAudit may be requiredAudit may be required
    Reserve StudyRequired (Va. Code § 55.1-1826, § 55.1-1965)Required (§§ 11-109.4, 11B-112.3)Check governing documents

    Audit vs. Review vs. Compilation — Which Does Your HOA Need?

    Your governing documents specify the level of assurance required. Here's what each level means for your association.

    Service LevelWhat CPA DoesAssurance Level
    AuditTests transactions, verifies balances, evaluates internal controls, expresses opinion on financial statementsHighest — Reasonable Assurance
    ReviewAnalytical procedures and inquiries only — no detailed testing of transactionsModerate — Limited Assurance
    CompilationAssembles financial statements from management's information — no verification or assuranceNone — No Assurance

    Fees depend on the size of the association (units and budget) and the quality of your records — we charge fair fees quoted upfront after a short call. Always check your association's declaration and bylaws to confirm the required level. When in doubt, request an audit for maximum protection and transparency to owners.

    What HOA Auditors Examine

    Our HOA audit covers all the key financial areas that matter most to your board, owners, and state regulators.

    Assessment Revenue & Collections

    Verify all assessments were billed per the board-approved budget, recorded correctly, and collected with proper delinquency tracking. Review payment plans and collection procedures.

    Reserve Fund Accounting

    Verify reserve funds are maintained in separate accounts from operating funds (required by state law), properly invested, and reconciled to the current reserve study. Review reserve fund deposits and withdrawals.

    Vendor Payments & Contracts

    Test payments to management company, landscaping, maintenance, insurance, and other vendors. Verify board authorization for contracts over the threshold in your governing documents.

    Bank Reconciliations

    Reconcile all operating and reserve bank accounts as of fiscal year end. Verify all outstanding checks and deposits in transit are properly documented.

    Budget vs. Actual Analysis

    Compare actual revenues and expenses to the board-approved budget. Identify significant variances and verify board authorization for over-budget expenditures.

    Internal Controls Assessment

    Evaluate financial controls including check signing authority, approval thresholds, segregation of duties, management company oversight, and financial reporting to the board.

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    Virginia HOA Audit Requirements

    What the Virginia POA and Condominium Acts require.

    Maryland HOA Audit Requirements

    Maryland condo audit rights and HOA rules explained.

    Agreed-Upon Procedures

    Targeted testing when a full audit is not required.

    Bookkeeping Services

    Monthly bookkeeping to keep your HOA audit-ready.

    Virtual CFO Services

    Strategic financial oversight for larger associations.

    Free consultation

    A free, no-obligation call about your HOA audit.

    HOA Audit FAQs

    Common questions from HOA board members and property managers about association audit requirements.

    Virginia does not impose a blanket annual audit mandate on every association. The Property Owners' Association Act (Va. Code § 55.1-1800 et seq.) and the Virginia Condominium Act (§ 55.1-1900 et seq.) require books and records and member access to financial information; the binding audit or review requirement usually comes from your declaration, bylaws, lender or insurer. See our Virginia HOA audit requirements guide.

    For Maryland condominiums, owners of at least 5% of the units may require an audit of the books by an independent CPA, no more than once in any 12-month period, at common expense (Md. Code, Real Prop. § 11-116). The Maryland HOA Act gives lot owners records access (§ 11B-112) but no comparable audit right, so HOA audit or review requirements come from the governing documents. Both acts require reserve studies (§§ 11-109.4, 11B-112.3).

    An audit provides the highest assurance — CPA tests transactions and expresses an opinion. A review provides limited assurance through analytical procedures only. A compilation assembles statements without any assurance. Your HOA bylaws specify which level is required.

    Fees depend on the size of the association (units and budget), transaction volume, and the quality of your records. A financial statement review generally costs less than an audit. We are transparent and charge fair fees quoted upfront after a short call.

    Key audit areas: bank reconciliations, assessment revenue and delinquencies, reserve fund accounting (must be separate from operating per state law), vendor payment controls, major contract compliance, board-authorized expenditures, and segregation of duties.

    Timing depends on the size of the association, the condition of your records and how quickly your management company can provide documents. We agree on a schedule with the board before fieldwork starts. Tell us your target report date, such as your annual meeting, as early as you can so we can plan around it.

    Yes — we audit HOAs remotely throughout VA, MD, and DC using electronic document exchange. Our virtual HOA audits are efficient. Most HOA records are already digital. Our process is efficient and doesn't require in-person visits.

    Reserves are not audited separately; they are part of the association's financial statements. Auditors test reserve balances and activity, compare funding with the board-approved budget and reserve study, and check that reserve and operating funds are tracked as the governing documents and board resolutions require.

    A financial audit tests whether the association's financial statements are fairly presented. A reserve study is a physical and financial analysis of common components that projects replacement costs and recommends reserve contributions. They answer different questions, and most associations need both; Maryland, for example, requires reserve studies for condos and HOAs (§§ 11-109.4, 11B-112.3).

    State law generally does not require one, but it is a strong practice. An audit or agreed-upon procedures engagement at transition gives the incoming manager a verified starting point, surfaces problems in how funds were handled, and protects the new board and manager from inheriting unexplained balances.

    Failing to follow the declaration or bylaws can expose the board to owner complaints, disputes and, in some cases, claims of breach of fiduciary duty, and it can complicate refinancing, insurance and unit sales. If a required audit was missed, talk with association counsel and schedule the engagement promptly.

    Ready to Schedule Your HOA Audit?

    Request a free consultation about your homeowners association or condominium association audit. We'll confirm what your governing documents and state statutes require, and provide a clear timeline and fee estimate.

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    Serving HOAs and condo associations throughout Virginia, Maryland, and Washington DC.

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