Annual audit
35. (1) The auditor shall make such examination as will enable the auditor to report to the owners as required by subsection (2). Auditor’s report (2) The auditor shall make a report to the owners on the financial statement, to be laid before the corporation 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 corporation 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. 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. Facts discovered after statement (4) Where facts come to the attention of the board or officers of the corporation that if known prior to the date of the last annual meeting of owners would have required a material adjustment to the financial statement presented to the meeting, the board or officers shall communicate such facts to the auditor who reported to the owners under this section and the board shall forthwith amend the financial statement and send it to the auditor. 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 with respect to the financial statement in accordance with subsection (2) and the board or, if it fails to do so within a reasonable time, the auditor shall mail or deliver such amended report to the owners. Idem (6) The financial statement shall contain a statement of changes in net assets or a statement of source and application of funds, and 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. Idem (7) The auditor in the auditor’s report shall make such statements as the auditor considers necessary if, (a) the corporation’s financial statement is not in agreement with its accounting records; (b) the corporation’s financial statement is not in accordance with the requirements of this Act; (c) the auditor has not received all the information and explanations that the auditor has required; or (d) proper accounting records have not been kept, so far as appears from the auditor’s examination. Right of access, etc. (8) The auditor of a corporation has right of access at all times to all records, documents, accounts and vouchers of the corporation and is entitled to require from the directors, officers and employees of the corporation such information and explanations as, in the auditor’s opinion, are necessary to enable the auditor to report as required by subsection (2). Auditor may attend owners’ meetings (9) The auditor of a corporation is entitled to attend any meeting of owners and to receive all notices and other communications related to any such meeting that an owner 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. Auditor must answer inquiries at owners’ meetings (10) At any meeting of owners, the auditor, if present, shall answer inquiries directed to the auditor concerning the basis upon which the auditor formed the opinion stated in the report made under subsection (2). Financial statement approved by board (11) The financial statement shall be approved by the board and the approval shall be evidenced by the signature at the foot of the balance sheet by two of the directors duly authorized to sign, and the auditor’s report shall be attached to or accompany the financial statement. Corporation to send copies of financial statements, etc., to owners (12) The corporation shall, ten days or more before the date of the annual meeting of owners, send by prepaid mail or deliver to each owner at the owner’s latest address as shown on the records of the corporation and shall file with the bureau a copy of the financial statement and a copy of the auditor’s report. Statements laid before owners at annual meeting (13) The board shall lay before each annual meeting of owners, (a) a financial statement made in accordance with generally accepted accounting principles; (b) the report of the auditor to the owners; and (c) such further information respecting the financial position of the corporation as the by-laws of the corporation require. R.S.O. 1990, c. C.26, s. 35. RESERVE FUND