Accountability . Partnership . Delivery

MCST AUDIT CONSIDERATIONS

The auditor is appointed to examine the accounts of the MCST to give an opinion on it. The auditor has to obtain sufficient appropriate audit evidence as a basis to form his opinion on the financial statements.

At least once in each year the accounts of a management corporation shall be examined by an auditor who shall state in his report whether the accounts are in his opinion properly drawn up so as to give a true and fair view of the income and expenditure of the management corporation and of the management corporation's affairs" (LTSA, Sect. 56 (1))


Insight into what an auditor looks for when examining the accounts of an MCST

  • Who prepares the accounts? Qualified accountant/Experienced accountant

  • Retention of accounting documents

  • Does the Management Council regularly review

  • Are set procedures adhered to?

  • Action to recover unpaid contributions

  • Ensure carrying out of resolutions that affect financial position

  • Segregation of sinking and management fund expenditure

  • Are internal controls adhered to?

  • Approval limits for expenditure

  • Calling for tenders/quotations for major expenditure

  • Reviewing quotations





    • Disclosure of interest in contracts- Every member of a council who is in any way, whether directly or indirectly,interested in a contract or proposed contract with the management corporation shall as soon as practicable after the relevant facts have come to his knowledge declare the nature of his interest at a meeting of the council' (LTSA, Sect. 66 (1)) Other subsections apply.


     

    ©2015 Gaapy.com . Design by VBIS INDIA Pvt Ltd.