Property Management

In Hawaii, what is the primary purpose of a property management trust account audit?

AA. To verify that the management fee is competitive with market rates
BB. To ensure that client funds are properly handled, segregated, and accounted for✓ Correct
CC. To confirm that the management company's employees are properly licensed
DD. To certify that the managed properties are properly insured

Explanation

Trust account audits verify that client funds are properly held in separate accounts, correctly accounted for, and not commingled with the management company's operating funds.

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