Would an
auditor lie?
“Well, when I was
younger, I lied all
the time, because once you understand the power of lying, it's really
like magic because you transform reality for people.”
—Louis Székely, Jr
It's rare but a few will.
I have heard the condo corporation auditors mislead the owners at two
different AGMs early in 2013 and as I attend more of AGMs, I expect to
hear even more misleading statements, evasions and out-right lies.
At a meeting last February in Etobicoke, the auditor stated that a
$130,000 operating deficit was actually just a timing issue because the
payments hadn't been paid yet. A timing issue? Absolute bull.
A few weeks later, when questioned about the entry of very minor
repairs and small expenses for such items as fuses and belts being paid
out of the Reserve Fund instead of the Operating Funds, the auditor
replied that the Act states that
the Reserve Funds can be used for "repairs and major
replacements". Not true.
Section 93.2 of the Act states: "A reserve fund shall be used solely
for the purpose of major
repair and replacement of the common elements and assets of the
corporation.
Lies like these are rare. Most often, when an auditor is asked a
question that he doesn't want to answer, he requests that the chair or
the president answer the question. Cute.
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