A Certified Public Accountant (CPA) is an accountant who has met the requirements of California state law and has been issued a license to practice public accounting by the California Board of Accountancy. CPAs audit financial statements of both publicly and privately held companies, including homeowner associations. To verify a CPA's license, check online with the Board of Accountancy.
Peer Review. Starting July 1, 2011, California CPAs are subject to mandatory review of their auditing and accounting practices. The peer review report is then available to clients who request it. For more information about CPA peer reviews, see California's Board of Accountancy website. In addition, see Replacing SAS 70 in the August 2010 edition of the Journal of Accountancy.
Recommendation: Boards should use CPAs who specialize in community associations. They are more aware of the unique issues affecting associations, such as tax considerations, the interplay between operations and reserves, proper internal controls, financial statement preparation, etc.
ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.