- This topic has 2 replies, 2 voices, and was last updated 6 years, 6 months ago by .
-
Topic
-
Our OC has decided to have an audit done of our financial statements. We’re in the ACT and thought there would have been auditors coming out of the woodwork. Maybe it’s because the job is smallish (under 30 units in our complex) but so far we’ve only had one auditor out of more than 5 approached give us a quote.
One auditor said that they would need to be registered to do company audits to do it, as the financial statements were prepared by our SM, and even though we’re a strata, our SM is a company. Is this true? Do we need to use an auditor who’s registered to do company audits?
Also, are there requirements for how many quotes we must get? I looked in the UTMA and couldnt spot anything. The only quote weve got so far has come in at less than 2k…
-
Replies
-
Just my humble opinion.
I recognise that you are in ACT, and I can only speak with respect to NSW . But I think my comments apply equally.
The legislation does not specify any qualifications for the auditor. The auditor for a strata also is not signing off on the correctness of the accounts as is done for a company. The strata auditor is checking that the accounts are a reasonable representation of the financial state of the strata.
So any person who can prove that they have suitable training could do your audit.
Strata accounts can be extensive, but they are not complicated because of the simple accounting method used. It’s generally a cash accounting system. Ie count the money in and the money out. Make sure receipts for match the payments.
Heck you could do it yourself if you can add.