When Does Your Saskatchewan Condo Corp Need an Auditor?
Introduction
Section titled “Introduction”Not every condominium corporation in Saskatchewan requires a full audit — but understanding when one is needed, and what the alternatives are, is important for board compliance and owner confidence.
The Three Levels of Financial Review
Section titled “The Three Levels of Financial Review”- Audit: The highest level of assurance. The auditor independently verifies financial statements and expresses an opinion on whether they’re fairly presented.
- Review engagement: A moderate level of assurance. The accountant performs analytical procedures and inquiries but doesn’t independently verify all figures.
- Compilation (Notice to Reader): The lowest level. The accountant assembles financial information provided by management but provides no assurance on its accuracy.
What Saskatchewan Requires
Section titled “What Saskatchewan Requires”The Condominium Property Act does not set a universal audit requirement for all corporations. The applicable level of engagement is typically set out in the corporation’s bylaws. If your bylaws are silent or unclear, get legal advice.
When a Full Audit is Strongly Recommended
Section titled “When a Full Audit is Strongly Recommended”Even if not legally required, a full audit is worth considering if:
- The corporation has experienced financial irregularities
- There has been significant board turnover and records are unclear
- A large special assessment is being levied
- The corporation is in a dispute with a developer or contractor
The Cost-Benefit Question
Section titled “The Cost-Benefit Question”Audits cost more than review engagements. But a well-maintained set of books significantly reduces the time an auditor needs to spend, which reduces the cost.
Disclaimer: For general informational purposes only. Not legal, financial, accounting, or tax advice.