February 2020
Each year at the Annual General Meeting (AGM) audited financial reports are reviewed and owners will be asked to reappoint the auditor for the coming year.
Prior to the vote supporting any auditor appointment for the next year, consider asking for more.
Condo owners can ask for more useful disclosure on the frequency and depth of last year’s contact between the audit firm and the audit or finance committee, and between any committee and condo owners. None of this is reviewed by the auditor. Having this background provides a better understanding of what goes on during the year, and the annual budgeting process, that is the foundation of how your money is being spent.
During the audit of your corporation’s financial statements management will provide accounts for the auditor to review. The report you receive each year is a financial statement providing a false impression of extreme precision. Many of the numbers in your financial report are based on assumptions that might be better presented as a range, accompanied by a critique of the judgments applied by the company. Ask your board to require the auditor to provide this information as part of their report.
The auditor does work as directed by the board. An audited financial report can be more useful when it includes the above information. This allows owners to understand assumptions behind the numbers and their likely impact on future budgets – and condo fees.
Asking more of your auditor helps avoid future problems.
