Audits to AGMs: What’s the Connection?

The Condominium Act, 1998 in Ontario requires all condominium corporations with more than 24 units to undergo an annual financial audit. Conducting an audit not only fulfills legal requirements but also offers several benefits. An audit provides audited financial statements prepared by an independent third party, which can be relied upon by third parties like potential buyers or lenders. It ensures compliance with the Income Tax Act, helps identify accounting procedures and internal control issues, and provides insights to management through a management letter. Choosing an auditor specializing in condominium corporations ensures adherence to the Act's financial aspects.

Tips for a smooth audit process include providing the auditor with all necessary documents in advance, preparing responses to common auditor questions, and explaining variances in the financial statements. Having detailed explanations allows auditors to make more accurate analyses of variances. Additionally, holding the Annual General Meeting (AGM) within six months of the fiscal year end is mandatory, and inviting the auditor to present the audited financial statements during the AGM can help owners understand the financial health of the condominium. Good communication with the auditor throughout the process is essential for a smooth and efficient audit.