What is conducted annually to review condominium financial statements by an external auditor?

The annual audit is a systematic examination of the financial statements of a condominium corporation by an external auditor. This process is important as it provides an independent assessment of the corporation's financial position, performance, and cash flow. The findings from the audit help in ensuring that the financial statements are free from material misstatements and that they comply with accounting standards and applicable laws.

During an annual audit, the external auditor will typically review all financial transactions, internal controls, and practices within the condominium, looking for accuracy and compliance. The ultimate goal is to produce an audit report that shareholders and stakeholders can rely on to make informed decisions about the management and financial health of the condominium.

The other options describe different types of audits or reviews that serve varied purposes. A performance audit focuses on evaluating the efficiency and effectiveness of operations, a financial review is usually less formal and may not involve an audit opinion, and a turn-over audit is specifically conducted when a new property management company takes over, which assesses the state of the financial documents and operational procedures at that point. Each has its own significance, but they do not replace the comprehensive nature of an annual audit specifically designed to validate the financial statements of the condominium.