Which financial documents are reviewed for planning purposes?

In the context of financial planning for a condominium management scenario, audited financial statements are particularly critical. These documents provide an overview of the past financial performance of the condominium corporation, detailing revenue, expenses, and overall financial position. Since they are prepared by an external party, they offer an independent and objective assessment, which is crucial for accurate planning.

Audited financial statements also give insight into trends over time, helping managers understand how past actions have affected the financial status of the condominium. This information is invaluable for future budgeting and strategic planning, ensuring that decisions made are based on comprehensive and reliable financial data.

In contrast, while budget proposals, internal financial reports, and expense records are useful for immediate financial management and tracking, they do not carry the same level of independent verification and long-term perspective that audited financial statements provide. Budget proposals are projections rather than assessments of past performance, internal reports might reflect management's perspective and could lack objectivity, and expense records track transactions without providing a full financial context. Thus, for planning purposes, the most reliable source of information is the audited financial statements.