Q&A: Audit Basics By: Jennifer Dickenson, RCM Contributions by Adrienne James, CPA, CA, LPA of Wilkinson Rogers LLP;
Lisa Madter, LPA, CPA, CA, BAcc of Ford Keast LLP and Michael Watson, BMath, CPA, CA, LPA of Davis Martindale
have that many high - rises. On average, a townhouse is 15 and a high rise is 20
Many Corporations are nearing the end of their fiscal year, so we reached out to some of the expert audit firms who are members of CCI . They carry out this important responsibility. Here are the questions and responses that soften come up at meetings, including the basics of what they do. Corporations must be audited annually, except where the corporation consists of fewer than 25 units and as of the date of the meeting, all owners consent in writing to dispense with the audit [Section 60(5)] (not recommended). See Auditors and Financial Statements Sections 60 - 71 of the Act for more on this area of responsibility for the boards on behalf of the owners. 1. What proportion of the Condominium Corporations that you audit have December 31 fiscal year ends? AJ We currently have 101
hours. However, that can change significantly with exceptionally good or bad property management.
Jennifer Dickenson, BSc (Hons), RCM is a condominium manager with Dickenson Condo Management. She was first elected to the CCI Board of Directors in 2016, currently serves as Vice- Present and the chapter’s National Representative. Jennifer is involved in all aspects of the chapter and shares her expertise.
LM
We only audit a few high - rise complexes; however, generally due to their size and categories of expenses, it can take 2 - 3 times as long as it would take for a townhouse complex. Generally high - rises take 2 to 3 times longer due to the nature of the expenditures and alternate revenue sources. Of course every corporation is a little different and it depends on number of units and other facilities.
MW
3.What is it that you look for when you are doing an audit? AJ N/R
LM
We ’ re looking to gather sufficient and appropriate audit evidence to satisfy the audit requirements from the Canadian Auditing Standards (CAS), while trying to ensure a risk - based
condos on our job list and 71 are December year ends
LM
Approximately 2/3
MW
61%
2. How long does it take you to complete an audit for a townhouse versus a high - rise complex? AJ That is not something we specifically track as we don ’ t
audit approach. This approach focuses the
majority of our time on the riskier areas of the audit in order to try and keep the audit fees as reasonable as possible for the owners.
CCI Review 2021/2022 —November 2021 - 32
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