Section 7-7 of the Rules requires that every brokerage submit an Accountant’s Report within 120 days after the brokerage’s fiscal year end. Section 4-9 of the RECBC Bylaws requires that each trust account maintained by the brokerage be reported on by the accountant in the Accountant’s Report. However, trust accounts maintained for the purpose of holding commissions have been excluded from the audit requirement.
From the Real Estate Rules:
7-7
(1) A brokerage must, within 120 days after the end of each fiscal year of the brokerage, file with the council
financial statements for that fiscal year,
an accountant’s report respecting that fiscal year, completed in accordance with the bylaws, and
a brokerage activity report respecting that fiscal year, completed in accordance with the bylaws.
(2) The financial statements must
be audited by an accountant, in the case of a brokerage that is a public company as defined in the Business Corporations Act, or
in any other case, have been subject, at a minimum, to
a review engagement by an accountant, or
if authorized under subsection (2.1), a notice to reader prepared by an accountant.
[12/06/2008 subsection (2)(b) repealed and the above subsection (2)(b) substituted effective 01/01/2009]
(2.1) The council may authorize a brokerage to file financial statements that have been subject to a notice to reader prepared by an accountant if all of the following conditions are met:
for a minimum of 3 consecutive fiscal years immediately preceding the date of authorization, the brokerage has filed financial statements that comply with subsection (2) (a) or (b) (i) and has satisfied the other requirements of this section as…