CALIFORNIA – Q&A When management hanky-panky is suspected, should a board hire a forensic auditor?
Los Angeles Times: Q&A When management hanky-panky is suspected, should a board hire a forensic auditor?
Answer: Boards should never ever lose control of the association’s bank accounts by allowing a company or manager to be the sole signatory. Even if a management company is handling the association’s finances, the board still needs access and control of everything to verify vendors’ actions. Frequent oversight and spot checks seem tedious but they can avoid larger expenses of time and money for things like forensic audits.
Still, if a board believes that it needs a thorough review of an association’s books, Hank Kahrs, a partner at RGL Forensics, a worldwide forensic accounting firm with offices in Los Angeles and Orange County, says, “It is better to meet with a forensic accountant when you first suspect a problem rather than wait until it’s too late. The forensic accountant can assist in implementing controls to help curtail illicit opportunity.” Read more:
Posted on October 31, 2016, in Uncategorized. Bookmark the permalink. Comments Off on CALIFORNIA – Q&A When management hanky-panky is suspected, should a board hire a forensic auditor?.
