Is it necessary to have a financial statement audit?
In Alberta, the Condominium Property Act requires that financial statements be prepared in accordance with generally accepted accounting principles.
The Act does not require a corporation to obtain assurance that its financial statements are presented in accordance with generally accepted accounting principles.
Generally speaking, unaudited financial statements of condominium corporations are not presented in accordance with generally accounting principles. They always lack the necessary note disclosures required under generally accepted accounting principles. They do not use the correct terminology or method of presentation. And in the vast majority of cases accounting adjustments are required to correct the accounting treatment, and to properly account for transactions. Probably more than ninety per cent of unaudited financial statements require material adjustments.
Unless the bylaws state otherwise, the Corporation can decide whether or not they wish to engagement a professional auditor.