| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7618 | Closed | public | Multifamily | Les Sparks |
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A CPA firm performs audits of 9 HUD housing projects. All 9 projects are managed by the same management company using the same accounting systems, policies and procedures. Controls are judged to be good. For purposes of selecting receipt and disbursement samples, can the projects be grouped as one population or must 9 separate populations be tested? If the populations cannot be grouped and the populations were grouped in several prior year audits resulting in smaller sample sizes, are these audits judged to be deficient? If this is the case, should the CPA firm go back and complete the testing after the fact? |
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From Les Sparks: Sampling requirements for HUD guaranteed loans is covered by the HUD Audit Guide. In the Guide it indicates that all audit areas are to be audited on a project-by-project basis. The only exceptions given were those related to group project-based sampling. The areas allowed to audited int he group process were tenant files, security deposits and management functions. Everything else, including receipts and disbursements are to audited on a project basis. The only reason to go back at this time is to fix a real issue related to Peer Review or HUD. Absent some compelling reason, I would just simply move ahead with getting this year’s process correct. Les |