JC Professional Corporation audit many condominiums during the year. We audit all types of condominiums including standard and common element condominium corporations. We audit townhouse and high-rise condominiums. Condominiums are required to file tax returns with the Canada Revenue Agency (CRA) and we prepare the condominium’s Corporation Income Tax Return, T2, and the Non-Profit Information Return, T1044.
Condominiums in the Province of Ontario are required by the Condominium Act, 1998 to call an Annual General Meeting within six months of the condominium's fiscal year-end and in all but a few exceptions, must present audited financial statements. The audited financial statements provide the owners, buyers, lenders and others who will use the statements to assess the financial condition of the condominium at the fiscal year-end, what major revenues were received during the fiscal year and what expenditures were incurred during the fiscal year. The audited financial statements also will indicate major contingencies, commitments and events that exist after the fiscal year-end and could have a significant effect on future financial results.
In all cases, a Board of Directors is elected by the owners at an Annual General Meeting to oversee the maintenance, repairs and general operations of the condominium. In most cases, the Board delegates the day-to-day administration of the condominium's operations, including repairs and maintenance, to a professional property management company. The property management company also provides condominium accounting and financial statements. In a few cases, the Board of Directors has decided to take on the day-to-day administration of the condominium directly rather than engage a professional property management company to do that task. The Board of Directors remains ultimately responsible for the maintenance, repairs and general operations of the condominium, whether or not a professional property management company is engaged.
The Board of Directors is responsible for the preparation and fair presentation of the condominium's financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
JC Professional Corporation’s statutory function as auditors of a condominium corporation is to report to the unit owners by expressing an opinion on the annual financial statements of the condominium. An auditor cannot obtain absolute assurance that material misstatements in financial statements will be detected because of the limitations of testing, sampling and internal controls and the possibility of concealment through collusion. We conduct our audits in accordance with Canadian Generally Accepted Auditing Standards. We develop an audit plan, do a risk assessment for the audit, obtain evidence about the amounts and disclosures in the financial statements and evaluate the appropriateness of accounting policies used by the Board of Directors.
At JC Professional Corporation, we will communicate with the Board of Directors and the management company if we identify any of the following matters:
- Misstatements, resulting from errors, other than trivial errors;
- Fraud or any information obtained that indicates that a fraud may exist;
- Any evidence obtained that indicates that an illegal or possibly illegal act, other than one considered inconsequential, has occurred;
- Significant weaknesses in the design or implementation of internal control to prevent and detect fraud or error; and
- Related party transactions identified by us that are not in the normal course of operations and that involve significant judgements made by the management company and the Directors concerning measurement or disclosure.