Auditor Information

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Auditor Information

Published On: July 5, 2022

Last Modified On: November 1, 2022

AUDITOR INFORMATION

The purpose of this document is to provide Electoral District Associations (“EDAs”), Candidates, and Nomination Contestants the information needed to manage relationships with auditors – a crucial component of the work involved in growing our movement and running successful campaigns.

WHEN IS AN AUDITOR REQUIRED?

Electoral District Associations
EDAs must have an auditor listed on their Elections Canada registry at all times in order to remain officially registered with the governing body. An EDA must submit its annual financial return for examination to the auditor listed on its Elections Canada registry if:
  • it received contributions totalling $10,000 or more,
  • or incurred expenses totalling $10,000 or more, during the period covered by the return.
It should be noted that the audit report must be submitted to Elections Canada by the filing deadline, otherwise the filing will be deemed incomplete and late.
Candidates
The candidate must appoint an auditor if:
  • the campaign received contributions totalling $10,000 or more,
  • or incurred expenses totalling $10,000,
  • or the candidate received 10% or more of votes cast in the electoral district.
When a criteria to appoint an auditor is met, an audit report must be submitted to Elections Canada with the Candidate’s Electoral Campaign Return by the filing deadline, otherwise the filing will be deemed incomplete and late.
Nomination Contestants
The Nomination Contestant must appoint an auditor if:
  • the nomination contestant’s campaign received contributions totalling $10,000 or more,
  • or incurred expenses totalling $10,000.
When a criteria to appoint an auditor is met, an audit report must be submitted to Elections Canada with the Nomination Contestant’s Campaign Return by the filing deadline, otherwise the filing will be deemed incomplete and late.

AUDIT FEES

Electoral District Associations
When an audit is required, Elections Canada subsidizes the audit fees for the EDAs Annual Financial Return. The auditor’s subsidy for the fiscal year that ends on December 31, 2021, is a maximum of $2,253. The subsidy is paid directly from Elections Canada to the auditor. Should the audit fees exceed the maximum subsidy amount, the balance must be paid to the auditor by the EDA.
Candidates
When an audit is required, Elections Canada subsidizes the audit fees for the Candidate’s Electoral Campaign Return. The auditor’s subsidy is equivalent to 3% of the candidate’s election expense. The maximum amount subsidized is $2,253 and the minimum amount subsidized is $375.50 The subsidy is paid directly from Elections Canada to the auditor. Should the audit fees exceed the subsidy amount, the balance must be paid to the auditor by the Campaign or the EDA.
Nomination Contestants
When an audit is required, Elections Canada subsidizes the audit fees for the Nomination Contestant’s Campaign Return. The auditor’s subsidy is equivalent to 3% of the contestant’s nomination contest. The maximum amount subsidized is $2,253 and the minimum amount subsidized is $375.50 The subsidy is paid directly from Elections Canada to the auditor. Should the audit fees exceed the subsidy amount, the balance must be paid to the auditor by the Campaign.

WHO IS ELIGIBLE TO AUDIT?

Person or partnership of which every partner who is a member in good standing of a corporation, an association, or an institute of provincially accredited professional accountants (CPA designation). Depending on jurisdictional requirements, the person or partnership auditor signing the audit report may require a public accounting license issued by the provincial/territorial regulator in the jurisdiction where the EDA, campaign, or nomination contest is based.  We recommend this information be confirmed with the auditor prior to the auditor being appointed for the political entity.

SELECTING AN AUDITOR

When the EDA, campaign, or nomination contestant must appoint an auditor, the official representative of the entity must obtain a statement from the auditor consenting to act in that capacity. As always, we would encourage you to use an auditor in your local area.

WORKING WITH THE AUDITOR

When the EDA, campaign, or nomination contestant is made aware that it will require the services of an auditor, it is important that they communicate with the auditor to assess their availability and expected delays to finalize the audit report. Prior to engaging an auditor, the EDA, campaign, or nomination contestant should request an estimate of fees from the auditor for the expected work. It is the responsibility of the Financial Agent or the Official Agent to make sure that the completed return is submitted to Elections Canada prior to the filing deadline. Please do not take for granted that the auditor will submit the return on your behalf. It is the responsibility of the Financial Agent or the Official Agent to prepare the Financial Return and additional reporting requirements, and to respond to Elections Canada regarding the reports filed. The auditor is responsible for reviewing the Financial Return.  The professional standards of an auditor generally preclude them from auditing work they may perform on the return.  For clarity the preparer of the return and the auditor must be different individuals, even with respect to changes to the return. For additional reporting requirements, it is not required to hire an auditor to review or prepare these documents.