{"id":10820,"date":"2025-01-07T16:34:11","date_gmt":"2025-01-07T15:34:11","guid":{"rendered":"https:\/\/www.uhy-fay.com\/can-owners-community-be-audited\/"},"modified":"2022-08-23T11:51:44","modified_gmt":"2022-08-23T10:51:44","slug":"can-owners-community-be-audited","status":"publish","type":"post","link":"https:\/\/www.uhy-fay.com\/en\/blog\/can-owners-community-be-audited\/","title":{"rendered":"Can Owner\u2019s Community Be Audited?"},"content":{"rendered":"

This question could have been asked by you as a property manager, lawyer, real estate agent, investor, president of your Community of Owners<\/strong> or, simply, as the owner of a property located in any urbanization in Spanish territory.<\/p>\n

In order to answer the question, it is necessary to know the accounting standards and resolutions of public Spanish bodies, which is why I wanted to share my experience on the review of Financial Statements of the Communities of Owners<\/strong>.<\/p>\n

First of all, it should be noted that in March 2016 the Accounting and Auditing Institute (ICAC) published in BOICAC 105, the query raised by some auditors and the corresponding response.<\/p>\n

The query raised was the following:<\/p>\n

\u201cRegarding the audit of the annual accounts, or other financial statements or accounting documents, of certain entities in which the regulatory regulations that apply to them, according to their legal nature, do not expressly establish a regulatory framework for financial information for their preparation and presentation.\u201d<\/em><\/p>\n

The ICAC is the Autonomous Body, attached to the Ministry of Economy, Industry and Competitiveness, which regulates the auditing activity, being the highest authority in accounting matters in Spain<\/p>\n

The ICAC’s response was that, in the case of owner\u2019s communities<\/strong>, the review and verification of the financial statements that they prepare will not be considered an account audit work subject to the regulations that regulate the audit activity<\/a>. Therefore, the performance of the auditors regarding the work of reviewing the financial statements of the Communities of Owners was made clear. A review work of a Community of Owners cannot be identified as an account audit because it does not have an accounting regulatory framework.<\/p>\n

Once the question has been resolved, it should be noted that, however, there is the possibility of conducting a review by issuing a \u201creport on agreed procedures on financial information<\/strong>\u201d, the purpose of which may be to perform specific substantive tests such as those carried out by auditors. Auditing corporations\u2019 issue Professional Action Guides that help auditors to carry out these assignments, such as the one issued by the Institute of Chartered Accountants of Spain (ICJCE).<\/p>\n

It is important to underline the importance of a work of this scope so that the owners know if they are carrying out the correct actions for the good management of the Owner\u2019s Community<\/strong>. Such as:<\/p>\n