The auditor and the Act
The auditor has a special place in the Condominium Act as
he is the
only professional hired by the corporation that is directly responsible
to the owners as well as the board. This, at least on paper, assures
the owners that their interests are being looked after.
The Act calls for the owners at every AGM to appoint a qualified person
to be the auditor until the close of the next AGM. If for any reason no
auditor is appointed, an owner can go to court to have an auditor
appointed. (If the owner is successful, the condo corporation pays the
court costs.)
The owners may fire an auditor at a meeting duly called for that
purpose by a majority vote of the owners present in person or proxy.
(Interestingly, it takes a minimum of 13% of the owners to
fire the
auditor but 50% plus one is required to fire a member of the board.)
If an auditor resigns, he or she can write a report to the corporation
stating the reasons for the resignation and the board is required to
attach a copy of that report to the notice of the next owners meeting.
The corporation shall have its financial statements prepared in the
prescribed manner and in accordance with generally accepted accounting
principles (GAAP). The board shall approve the financial statements
before the AGM.
The auditor shall, every year, examine the financial statements and
issue a report. The auditor’s report is required to include the
statements that the auditor considers necessary if the corporation’s
financial statements are not in accordance with GAAP and the reserve
fund is not adequate according to the Reserve Fund Study. The
corporation shall attach a copy of the financial statements and the
auditor’s report to the notice of the AGM.
The corporation or an owner may require that an auditor, or a former
auditor, attend a meeting of owners where they shall answer inquiries
concerning the basis upon which they formed the opinions stated in
their reports.
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