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We need your help to improve Living in Strata! Spot something not quite right or have more to add? Click on the pencil at the end of the article to edit or update… or even add an image. To start a discussion or ask a question, use the box to the left (it's linked to the forum) Each year at the AGM the body corporate must decide whether it will have its books and records for the coming year reviewed by a properly qualified auditor. Schedule 6 of the Body Corporate and Community Management Act 1997 requires the auditor to be a registered company auditor.
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Audits for Body Corporate Once a year your body corporate will have an annual general meeting, at this meeting lot owners can vote towards having the body corporate’s financial accounts audited by an independent auditor. The auditor must provide an opinion as to whether the financial accounts present fairly, in all material respects, the financial position and performance of the body corporate for the year then ended. In addition, new Australian Auditing Standards (ASA260) require the auditor to communicate their findings directly to “those charged with governance” eg the committee. In Queensland, legislation states that each financial year your body corporate requires to have their accounts audited unless a special resolution is passed against it, this resolution must be written 'that the body corporate's statement of accounts for the financial year (insert year) not be audited'. An auditor is designated by ordinary resolution, the motion agreed upon will need to be included in the AGM agenda along with the name of the auditor proposed. There are specifications on who is or is not allowed to perform the audit, for starters the auditor cannot be a committee member, manager of the body corporate or associate of any of these persons. The auditor must be compliant with the definition of an auditor in The Act – Schedule 6. Upon completion an auditors report must be prepared for the body corporate, this must be sent out in the notice for the next annual general meeting. “KPMG can provide independent audit services designed to help enhance the reliability of information prepared by clients for use by investors, creditors and other stakeholders in accordance with statutory requirement”
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