Do we need to conduct an audit of our body corporate accounts?
Unless there's a special resolution passed at the AGM stating otherwise, the body corporate is obligated to have its statement of accounts audited by an auditor for each financial year.
The body corporate is required to maintain accurate accounting records and annually produce a 'statement of accounts' detailing its income and expenditures for the fiscal year. This statement must be provided along with the notice of the Annual General Meeting (AGM) following the conclusion of the financial year for which the accounts were compiled.
Who is eligible to conduct the audit?
The audit of the body corporate cannot be carried out by a committee member, body corporate manager, or any individual associated with them.
- CPA Australia or
- the Institute of Public Accountants; and
- the Institute of Chartered Accountants in Australia; or
- have a total of 2 years auditing experience.
Upon concluding the audit of the body corporate's statement of accounts for a financial year, the auditor must issue a certificate.
- confirming whether the statement of accounts accurately reflects the financial status of the body corporate; and
- if the statement of accounts does not provide a true and fair view of the body corporate’s financial affairs, the auditor must identify any deficiencies in the statement; and
- a copy of the auditor's certificate must be included with the notice of the subsequent annual general meeting held after the certificate has been issued.
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Arpita Desai
Body Corporate/Strata Property auditing requirements vary from state to state.
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Arpita Desai