Side by side
Each service is performed under professional standards issued by the AICPA. Audits follow generally accepted auditing standards (GAAS), codified in the AU-C sections. Reviews follow the Statements on Standards for Accounting and Review Services (SSARS), section AR-C 90. Compilations follow SSARS section AR-C 80.
| Audit | Review | Compilation | |
|---|---|---|---|
| Assurance level | Reasonable assurance: high, but not absolute | Limited assurance | No assurance |
| Main procedures | Risk assessment, tests of records, and evidence from outside sources, such as bank confirmations | Primarily inquiry and analytical procedures | Assisting management in presenting the statements; no evidence is obtained |
| Report issued | Independent auditor's report with an opinion | Review report with a conclusion that the accountant is not aware of material modifications needed | Compilation report stating that no assurance is provided |
| Independence | Required (Florida-licensed CPA) | Required (Florida-licensed CPA) | Not required by professional standards; a lack of independence must be disclosed in the report |
| Florida minimum, by total annual revenues | $500,000 or more (and HOAs with 1,000 or more parcels) | $300,000 to less than $500,000 | $150,000 to less than $300,000 |
Florida requires condominium financial statements to be prepared on the accrual basis using fund accounting, in accordance with generally accepted accounting principles. The full thresholds are on Florida reporting requirements.
Audit
An audit gives reasonable assurance that the financial statements are free of material misstatement, whether from error or fraud. The auditor plans and performs procedures, gathers evidence, and expresses an opinion on whether the statements are presented fairly under generally accepted accounting principles.
Reasonable assurance is a high level of assurance. It is not a guarantee. More on what is involved is on our audits page.
Review
A review gives limited assurance. The accountant asks questions of management and the manager and performs analytical procedures, such as comparing balances with the prior year and the budget and looking into unusual changes.
The report states whether the accountant is aware of any material modifications needed for the statements to conform with generally accepted accounting principles. A review does not result in an opinion.
Compilation
A compilation gives no assurance. The accountant assists management in presenting the association's financial information in the form of financial statements. The accountant does not test the records or obtain evidence about them.
The board remains responsible for the statements and for the records behind them.
What each one does not do
An audit does not
- Guarantee that the statements are free of all errors or that every fraud has been found.
- Test every transaction. It tests samples and focuses on amounts large enough to matter to readers.
- Evaluate the board's decisions or the building's physical condition.
A review does not
- Express an opinion on the statements.
- Obtain outside evidence, such as bank confirmations, or test internal controls.
A compilation does not
- Provide any assurance on the statements.
- Verify the records or look for errors or fraud.
None of them
- Replaces a reserve study, a structural integrity reserve study (SIRS), a milestone inspection, or an engineer's judgment.
- Gives legal advice or takes on the board's or management's responsibilities.
Changing the level
An association may always prepare a higher level than the minimum. Owners may also vote to use a lower level for a year, but not in consecutive fiscal years. The vote needed differs for condominiums and HOAs.
See changing the level of the report for the details, and ask your association's attorney about the vote itself.
Sources
Primary sources, reviewed as of November 6, 2026. Laws change; confirm the current text before acting.
- Statements on Auditing Standards — currently effectiveAICPA & CIMA
- Statements on Standards for Accounting and Review Services — currently effectiveAICPA & CIMA
- Section 718.111, Florida Statutes (2026) — Condominium association records and financial reportingFlorida Legislature, Online Sunshine
- Section 720.303, Florida Statutes (2026) — HOA records, reserves, and financial reportingFlorida Legislature, Online Sunshine
- Rule 61B-22.006, Florida Administrative Code — Financial Reporting RequirementsFlorida Department of State