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By law, a corporation is required to appoint an auditor of the corporation, however, non-distributing corporations (generally smaller private corporations), are entitled to waive the requirement to appoint an auditor, and can waive the requirement for the corporation to provide audited financial statements in each year.
It’s safer to require audited financial statements as it provides a higher level of financial review, however, because audited financial statements can be expensive to obtain, we find that small private businesses usually prefer to waive the requirement to appoint an auditor for the corporation and prefer instead to appoint an accountant or accounting firm to act as accountants and accounting advisors only, rather than as auditors.
If you’d like more information please contact a business lawyer with Twin River Law LLP.
This article contains general information, NOT LEGAL ADVICE.
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