Condominium Audits in Calgary
The Condominium Property Act in Alberta requires that condominium financial statements should be prepared in accordance with “generally accepted accounting principles.” Unaudited statements typically lack the necessary note disclosures, terminology or method of presentation required to meet these principles.
As a volunteer member of your condominium association, you probably don’t have much time to dedicate to the lengthy process of meeting generally accepted accounting principles, so scheduling yearly condominium audits for your Calgary property is the best way to meet requirements for your condominium financial statements. The Chartered Professional Accountants at Masone and Company have years of tax and audit experience.
How a CPA Can Help
It is the board of directors’ responsibility to issue an association’s financial statements, even if a management company prepares the actual statements. You can utilize a third-party, such as a CPA, to prepare your financial statements, but your board of directions must review said statements.
When it comes to using a CPA to prepare your financial statements, you can choose between an audit, review and compilation. Mason and Company offers audits and reviews, but what’s the difference? It is the amount of assurance provided by the CPA.
- Audit: Providing the highest level of assurance, an audit is the most in-depth look into your condo engagement to ensure you’re meeting financial tax requirements.
- Review: Financial reviews are smaller in scope than audits. They provide you with limited assurance from your accountant over the financial statements.
- Compilation: The smallest in scope, a compilation provides no assurance or opinion on the financial statements from your accountant.
Some condo associations require an audit while others require a simple review. Your by-laws should state which level of service is required for your association.
What Does a Condominium Audit Entail?
An annual audit of your condo association’s financial statements is a high level of service that requires additional procedures that are not mandated in reviews or compilations. An audit entails:
- Testing transactions and balances
- Communicating with third-parties
- Understanding internal controls
- And more
Our auditors will provide a list of items we need in order to begin your audit. This includes all of your financial statements, check registers, detailed ledger reports, bank statements and much more. Having this information organized prior to the audit will allow the process to be much faster and efficient.
Contact Our CPAs for Condominium Audits in Calgary
The accountant’s objective after your condominium audit in Calgary is to issue an opinion as to whether your association’s financial statements are free from material misstatement and are presented fairly. An audit is not intended to ensure every line of your financial statements is perfect.
Masone and Company has a good relationship with the property management organizations of Alberta, British Columbia and Nunavut. Our team offers efficient and cost-effective condominium audits and reviews so you can be sure your association is meeting tax and financial requirements. To schedule a condominium audit in Calgary, contact Masone and Company today.
About Masone and Company
B Comm., DPA, I.C.I.A., MFA. , CPA CMA, CGA
We specialize in accounting, tax, and bookkeeping services. Our clients always receive services from seasoned professionals, who take a global view of their firms and then analyze how we can save them money.