Condominium Auditor
According to the provisions of the Condominium Reform Law, the assembly of owners may appoint a condominium auditor, even for multiple years, to meticulously verify the building’s accounts. But what exactly is the role of this figure, and when does it become necessary?
CB Amministrazioni can provide a professional auditor for your condominium’s accounting needs.
The Work of the Condominium Auditor in Italy
This new figure, provided for by Article 1130-bis of the Italian Civil Code, is tasked with regulating condominium accounting, protecting the accuracy of financial statements, and involving owners in the auditing process. Some grey areas remain regarding the scope of the audit and the specific purposes of the consultancy. When building managers propose a condominium auditing service, several limitations apply, which vary depending on the context and the specific situation in which the auditor operates.
More precisely, this means that if an audit service concerns accounts already presented to and approved by the assembly, the professional’s role is limited to checking the parameters of validity and consistency, but not the decisions made, starting with how expenses were allocated—even if they were allocated incorrectly. The situation changes when the audit involves fiscal years for which the financial statements were never presented and, consequently, never approved. In this case, the auditor can go beyond a standard legitimacy check. For this reason, the audit will be aimed at determining whether the criteria used to allocate expenses are correct.
Who can perform the audit and who can appoint them?
Their appointment is not necessarily based on third-party choices; in fact, anyone can suggest a suitable candidate for this role during a condominium assembly. Once appointed, the condominium auditor will verify the work of the building manager and audit the accounts, informing the owners about the status of the financial statements.
As specified by Art. 1130-bis: “the condominium assembly may, at any time or for specifically identified multiple years, appoint an auditor to verify the condominium’s accounting. The resolution is passed with the majority required for the appointment of the manager, and the relative expense is divided among all owners on the basis of property thousandths.”
What has changed compared to the past?
Italian regulations regarding the appointment of an auditor contain several “grey areas,” given that being of legal age and having legal capacity are still the only formal requirements for a role that is far more complex than it might seem. Consequently, while in the past this task was often performed by the building manager themselves in many condominiums, today—especially in residential contexts within large cities—this is no longer the case. Instead, owners rely on professionals equipped with the necessary training in auditing. The risk seen in many condominiums, where relying on individuals lacking basic skills led to disputes over incorrect accounting audits, is now largely a thing of the past. When building managers in Italy propose an auditing service today, they do so with the utmost professionalism, relying on experts in the field.
