A large part of the practice of Colin Gray Professional Corporation is condominium accounting and audits throughout the year.  We undertake different types including standard and common element, townhouse and high-rise condominiums. Condominiums are required to file tax returns with the Canada Revenue Agency (CRA) and we prepare the Corporation Income Tax Return, T2, and Non-Profit Information Return, T1044.

condoauditWith few exceptions, condominium corporations in Ontario must present audited financial statements and call an Annual General Meeting within six months of the fiscal year-end.  These financial statements enable owners, buyers, lenders and others to assess the fiscal condition of the condominium at year-end, what major revenues were received and what expenditures were incurred during the year.  The statements also will indicate major contingencies, commitments and events that will exist after the fiscal year-end that 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. Usually, the Board delegates the day-to-day administration, such as repairs and maintenance to a professional property management company. In a few cases, the Board may decide to take on the day-to-day administration of the condominium directly rather than engage a third party management company.  In any event, the Board of Directors remains ultimately responsible for the maintenance, repairs and general operations of the condominium, whether or not outside 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Colin Gray Professional Corporation’s statutory function as the auditor of a condominium corporation is to report to the unit owners by expressing an opinion on the annual financial statements.  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, obtain evidence about the amounts and disclosures in the financial statements and evaluate the appropriateness of accounting policies used by the Board of Directors. We then 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 errorscondos
  • 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

To explore the benefits of employing Colin Gray Professional Corporation's Condominium Audit services, please contact our office at 905-333-4818 or, send us your inquiry using the following form.

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