Auditor protects the board
There are a few auditors who do take the owners' best interests to
heart and do a great job in describing the financial health of the condo
corporation.
I have a lot of respect for them. Often, I find that
if management and the board are hiding serious financial problems from
the owners, they will decline re-appointment. On four different
occasions, I have seen auditors either submit qualified reports or
refuse to give an opinion.
They had personal ethics and a licence to protect. Both were more important to them than a contract.
As for the others, the "the auditor works for the owners" is a myth that fools the owners into
thinking the corporation is financially healthy and the board is doing
a great job.
In my opinion, these auditors protect the board, sometimes far in access to what
should be allowed.
The financial statements are the management company's statements that
have been approved by the board. The auditor gives an opinion on those
statements. He has a lot of flexibility in how and if he discloses any
discrepancies.
It is important for the owners to search through the auditor's notes on
the front page, the Statement of Financial Position and in
the notes at the back of his report to dig out any clues that not everything is as
rosy as the board makes out.
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