Preparing for the Annual Audit of Your Condominium’s Financial Statements
FEATURE
Vicki Wilson, CPA, CA
Preparing for the Annual Audit of Your Condominium’s Financial Statements
BLR, LLP
T
he Condominium Act of Ontario requires that all condominiums have an independent auditor perform an annual audit of their financial statements, with one exception: Condominiums with less than 25 units are exempt from this requirement if all of the owners consent in writing to waive the audit each year. If an audit is required, the condominium corporation must appoint an auditor at the AGM. Once this has occurred, it is the condominium’s responsibility to compile the year-end package for the auditor. The auditor’s role is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, in addition to ensuring compliance with Canadian accounting standards for not-for-profit organizations (ASNPO). The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance with ASNPO. The auditor will require documentation for the full fiscal year and subsequent to year end, up to the date of the auditor’s report. This report will note any significant items that the auditor feels are necessary to bring to the attention of the users of the financial statements. The auditor’s report is dated when the Board of Directors provides written approval to the auditor and therefore, part of the audit requires a review of documentation subsequent to year end. Be prepared to tell your auditor when you require draft financial statements and provide the required infor-
Condo News – SPRI N G 2020
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