I live in a small 10 unit condo complex in Alaska. The Declaration was legally amended to change the audit requirement to a review of the books every other year by a licensed CPA. About a year ago I requested a copy of the latest audit and learned one had not been done for at least seven years. At the last owners meeting the manager stated that for small condo associations a federal tax return suffices for an audit. I have researched state laws and could not find anything that backed up the manager's statement. Has anyone heard a tax return suffices for a review? What will a review of the books reveal? Shouldn't the manager encourage the board to follow Declaration requirements until they are legally changed?
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