At the upcoming AGM for Strata Plan KAS4455 in Kamloops, the strata council has received a petition from owners representing 40% of the strata lots, demanding an audit of the financial statements for the past fiscal year due to concerns about unaccounted expenses. What is the strata council's obligation regarding this request?

Question: At the upcoming AGM for Strata Plan KAS4455 in Kamloops, the strata council has received a petition from owners representing 40% of the strata lots, demanding an audit of the financial statements for the past fiscal year due to concerns about unaccounted expenses. What is the strata council's obligation regarding this request?

Answer options: ✅ The strata council must arrange for an audit if requested by owners representing at least 20% of the strata lots.

• The strata council can choose to ignore the request unless a 3/4 vote at an AGM approves an audit.
• The strata council must conduct an audit only if the previous year's financials showed a significant deficit.
• The strata manager should confirm the concerns with BCFSA before proceeding with an audit.

Correct answer: The strata council must arrange for an audit if requested by owners representing at least 20% of the strata lots.

Explanation: Section 35 of the Strata Property Act states that the strata corporation must conduct an audit if requested by owners of at least 20% of the strata lots by petition, regardless of typical vote thresholds.