127 (1) The auditor shall make such examination as will enable the auditor to report to the members as required by subsection (2).  R.S.O. 1990, c. C.35, s. 127 (1). Auditor’s report (2) The auditor shall make a report to the members on the financial statement, other than the part thereof that relates to the period referred to in subclause 128 (1) (a) (ii), to be laid before the co-operative at any annual meeting during the auditor’s term of office and shall state in the report whether in the auditor’s opinion the financial statement referred to therein presents fairly the financial position of the co-operative and the results of its operations for the period under review in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding period, if any.  R.S.O. 1990, c. C.35, s. 127 (2). Idem (3) Where the report under subsection (2) does not contain the unqualified opinion required thereby, the auditor shall state in the report the reasons therefor.  R.S.O. 1990, c. C.35, s. 127 (3). Facts discovered after statement (4) Where facts come to the attention of the officers or directors, (a)  which could reasonably have been determined prior to the date of the last annual meeting of the members; and (b)  which, if known prior to the date of the last annual meeting of members, would have required a material adjustment to the financial statement presented to the meeting, the officers or directors shall communicate such facts to the auditor who reported to the members under this section and the directors shall forthwith amend the financial statement and send it to the auditor.  R.S.O. 1990, c. C.35, s. 127 (4). Amendment of auditor’s report (5) On the receipt of facts furnished under subsection (4) or from any other source, the auditor shall, if in the auditor’s opinion it is necessary, amend the auditor’s report in respect of the financial statement in accordance with subsection (3) and the directors or, if they fail to do so within a reasonable time, the auditor shall send the amended report to the members.  R.S.O. 1990, c. C.35, s. 127 (5); 2004, c. 31, Sched. 8, s. 21. Idem (6) If the financial statement contains a statement of changes in net assets or a statement of source and application of funds, the auditor shall include in the auditor’s report a statement whether in the auditor’s opinion, in effect, the statement of changes in net assets or the statement of source and application of funds presents fairly the information shown therein.  R.S.O. 1990, c. C.35, s. 127 (6). Idem (7) Whether or not the assets and liabilities and income and expense of any one or more subsidiaries of a co-operative are included in the financial statement of the co-operative, the report of the auditor of the co-operative required by subsection (2) may refer to the reports of auditors of one or more of such subsidiaries, but such reference shall not derogate from the duty of the auditor of the co-operative to comply with subsection (2).  R.S.O. 1990, c. C.35, s. 127 (7). Idem (8) The auditor in the auditor’s report shall make such statements as the auditor considers necessary, (a)  if the co-operative’s financial statement is not in agreement with its accounting records; (b)  if the co-operative’s financial statement is not in accordance with the requirements of this Act; (c)  if the auditor has not received all the information and explanations that the auditor has required; or (d)  if proper accounting records have not been kept, so far as appears from the auditor’s examination.  R.S.O. 1990, c. C.35, s. 127 (8). Right of access, etc. (9) The auditor of a co-operative has right of access at all times to all records, documents, accounts and vouchers of the co-operative and is entitled to require from the directors, officers and employees of the co-operative such information and explanation as in the auditor’s opinion are necessary to enable the auditor to report as required by subsection (2).  R.S.O. 1990, c. C.35, s. 127 (9). Idem (10) The auditor of a co-operative has right of access at all times to all records, documents, accounts and vouchers of all subsidiaries of the co-operative and is entitled to require from the directors, officers and employees of each such subsidiary such information and explanation as in the auditor’s opinion are necessary to enable the auditor to report as required by subsection (2).  R.S.O. 1990, c. C.35, s. 127 (10). Idem (11) Where a subsidiary referred to in subsection (10) is a corporation to which this Act does not apply, the co-operative shall make available to its auditor the records, documents, accounts and vouchers of that subsidiary and shall require the directors, officers and employees of that subsidiary to make available to its auditor the information and explanation required by subsection (10).  R.S.O. 1990, c. C.35, s. 127 (11). Auditor may attend members’ meetings (12) The auditor of a co-operative is entitled to attend any meeting of members of the co-operative and to receive all notices and other communications relating to any such meeting that a member is entitled to receive, and to be heard at any such meeting that the auditor attends on any part of the business of the meeting that concerns the auditor as auditor.  R.S.O. 1990, c. C.35, s. 127 (12). Member may require auditor’s attendance at members’ meeting (13) Any member of a co-operative, whether or not the member is entitled to vote at meetings of members, may, by notice in writing to the co-operative given five days or more before any meeting of members, require the attendance of the auditor at such meeting at the co-operative’s expense, and in such event the auditor shall attend the meeting.  R.S.O. 1990, c. C.35, s. 127 (13). Auditors must answer inquiries (14) At any meeting of members, the auditor, if present, shall answer inquiries directed to the auditor concerning the bases upon which the auditor formed the opinion stated in the report made under subsection (2).  R.S.O. 1990, c. C.35, s. 127 (14). Section Amendments with date in force (d/m/y) 2004, c. 31, Sched. 8, s. 21 - 31/08/2007