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.

top   contents   chapter   previous   next