Does a strata corporation need an audit?
Owners sometimes assume the strata's books are audited every year. In most BC stratas they are not, and nothing in the Act says they must be. Whether yours should be is a decision for the owners.
Last reviewed November 10, 2026, against the current Strata Property Act, Strata Property Regulation and Standard Bylaws on BC Laws.
The short answer
No. The Strata Property Act does not require a strata corporation to have its financial statements audited. It requires books of account, an annual budget, and a financial statement sent with the AGM notice containing the information set out in Regulation 6.7. A strata may choose an audit or a review engagement by including it in the budget, by an owners' resolution, or by bylaw. Owners can also inspect the financial records themselves under section 36.
What the law requires
- Books of account showing money received and spent and the reason for each receipt or expenditure (section 35).
- A budget approved at each AGM (section 103).
- A financial statement distributed with the AGM notice, current to a day within the two months before the meeting, showing the opening and current balances of the operating and contingency reserve funds, income from all sources, expenditures from each fund including unapproved ones, and special levy income and spending (Regulation 6.7).
- Separate accounting for the contingency reserve fund and for special levy money (sections 95 and 108).
- Records kept for the periods in Regulation 4.1, including bank statements and financial statements.
None of these has to be audited, reviewed or even prepared by an accountant. Check your bylaws, though: some stratas have adopted a bylaw requiring an annual audit or review.
Three levels of outside assurance
| Engagement | What the accountant does | Relative cost |
|---|---|---|
| Compilation | Assembles statements from the strata's records. No assurance given. | Lowest |
| Review engagement | Enquiry and analysis to see whether the statements are plausible. Limited assurance. | Middle |
| Audit | Tests transactions, confirms balances with the bank, examines controls. Reasonable assurance, with an opinion. | Highest |
These are performed by a chartered professional accountant. Fees depend on the size of the strata and the state of its records, so ask for quotations.
StrataMinutes can take this off your plate. Money decisions are the ones owners, buyers and the tribunal read most closely. Have the minutes prepared for you, with every motion and vote count recorded. Your first month is free.
When it is worth it
- Large budgets or reserves. The more money, the stronger the case.
- Self-managed stratas, where one volunteer may handle all the money.
- A change of manager or treasurer, to draw a clean line.
- Major projects funded by levies or loans.
- Concerns or irregularities: unexplained balances, missing statements, late bills.
- Lenders or insurers may ask for reviewed or audited statements.
A small strata with a simple budget and two signatures on every payment may reasonably decide the cost outweighs the benefit.
How owners can require one
- In the budget. Council includes a line for an audit or review, and the owners approve the budget by majority.
- By resolution. At a general meeting, a majority may direct council to obtain one (section 27), provided the cost is in the budget or otherwise approved.
- By bylaw. A 3/4 vote makes it a standing requirement.
- By demand. Owners with 20% of the votes can have the resolution put on the agenda (section 46).
Sample resolution: BE IT RESOLVED by a majority vote that the strata council engage a chartered professional accountant to perform a review engagement of the strata corporation's financial statements for the fiscal year ending December 31, 2026, at a cost not to exceed $3,500, to be paid from the operating fund, and to report to the owners at the next annual general meeting.
What owners can check themselves
Any owner may ask to inspect or copy the strata's books of account, bank statements, cancelled cheques, contracts and financial statements, and the strata must comply within two weeks (sections 35 and 36). An informal finance committee of two or three owners who look over a sample of invoices and bank statements each year is a common low-cost safeguard.
Controls that matter more than an audit
- Two signatures or approvals on every payment.
- Bank statements go to someone other than the person who writes the cheques.
- Monthly financial statements reviewed at council meetings and noted in the minutes.
- Reserve fund held in its own account, in permitted investments.
- No cash.
- Conflicts disclosed when a council member is connected to a supplier (section 32).
- Fidelity or crime coverage in the insurance policy.
Professionally managed stratas
A licensed strata management brokerage must hold strata money in trust accounts and keep records as the regulator, the BC Financial Services Authority, requires. That is an important protection, but it is oversight of the brokerage, not an audit of your strata's statements. Council should still read the monthly statements and bank reconciliations. See treasurer duties.
Questions councils and owners ask
Is a strata audit mandatory in BC?
No. The Act requires books of account and a financial statement but not an audit, unless your own bylaws require one.
Can owners force an audit?
A majority at a general meeting can direct council to obtain an audit or review, and the cost should be approved in the budget or by resolution.
What is the difference between an audit and a review?
An audit tests the records and gives an opinion with reasonable assurance. A review is less extensive and gives limited assurance.
Can an owner look at the strata's bank statements?
Yes. Bank statements are records the strata must keep and make available to owners within two weeks of a request.
Does the strata manager's trust account protect us?
It is a regulatory safeguard for money held by the brokerage. It does not replace council's own review.
Sound finances start with a sound record
Every spending decision should trace back to a motion. StrataMinutes prepares minutes that give your treasurer, reviewer or auditor that trail.
Free for 30 days, then $29 a month. Cancel anytime.
For a 30-lot strata, that is under $1 a lot each month. Have the strata pay: free council approval kit.
This page is general information for BC strata corporations, not legal advice. Your strata's own filed bylaws may differ from the Standard Bylaws. See the current text of the Strata Property Act and the Strata Property Regulation on BC Laws.
Related guides
Financial Statements
Treasurer Duties
Annual Budget
Requesting Records
Conflicts
Self-Managed Stratas