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Happy New Year Jimmy and other Flat Chat experts.
The current strata committee (SC) members, including me, are serving for the first time. Our building is in Sydney. At our AGM the owners corporation (OC) voted to engage auditors. All we can find on the subject of auditing is Section 95 of SSMA 2016 which merely says that audits must be done in accordance with Australian Auditing Standards. The SSMR 2016 is silent on the matter.
Does the SC choose the auditor and sign the contract of engagement without further ado or must we obtain quotes for presentation at an EGM for the OC to vote on?
We presume that the auditor will submit the contract of engagement.
What is the approximate cost of an audit? Is there a scale of fees prescribed that all auditors must adhere to?
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The cost of the audit will depend on the size of the scheme (number of lots) and the complexity of the finances. I have seen the figure of $10 per lot with a minimum charge of $80 quoted.
There would be no harm in getting a few ballpark quotes. Or you could contact our friends at the OCN for their advice.
The Australian Auditing Standards refers to the professional standards of the auditors, including them being qualified and independent – you can find out more HERE.
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