An audit is required for all condominium corporations with one exemption. Condominiums with less than 25 units can be exempt from the audit requirement provided all owners consent in writing each year. If the financial statements include supplementary schedules that are unaudited, they should be clearly marked as such.
Simply put, auditors are required to conduct their audits in accordance with CAS and to report to the owners whether, in their opinion, the financial statements are presented fairly in accordance with Canadian accounting standards for not-for-profit organizations (Part III of the Handbook) and to report whether the requirements of the Act have been met (CAS 700 and other CASs as appropriate).
Residential condominium corporations are considered Not- for- profits for tax purposes. CRA has yet to speak to the status of commercial condominium corporations to determine whether they meet the NPO status in the Income Tax Act. However, if the condominium corporations sole purpose is to cover the common costs of the owner and not generate large profits/ surplus funds it can be argued that the condo corp. meets NPO status.
For more information on the Condo audit requirements, visit the Ontario condo law blog.
"CPA Ontario 2013- Accounting, Auditing and Tax Guidelines for Ontario Condominium Corporations"