NEWMARKET, Ont - An Ontario judge has ruled that an auditor will be taking a close look at the campaign finances of Vaughan Mayor Linda Jackson.

In a ruling released Tuesday, Justice Lucia Favret allowed an appeal by two Vaughan electors and directed a compliance audit of Jackson's 2006 election campaign.

Residents Quintino Mastroguiseppe and Gino Ruffolo asked Vaughan city council in May 2007 to order the audit.

They alleged more than 20 apparent contraventions of the Municipal Elections Act, totalling in excess of $30,000.

City council decided to defer the request, and the residents appealed.

Favret says the council exceeded its jurisdiction by attempting to delay the request.

"This is a rare but significant event,'' said Eric Gillespie, legal counsel for the electors.

"The auditor has very broad powers and will be able to fully investigate the many allegations against this mayor,'' Gillespie said Tuesday.

The allegations against Jackson have not been proven in court.

Jackson said she was disappointed by the decision in response to "frivolous'' allegations, but had nothing to hide.

"I was surprised with the audit being ordered because the (campaign finance) books are still open'' owing to the recent recount battle, Jackson told the Toronto Star.

Jackson was declared the winner of the Nov. 12, 2006, election last April 26 after a court-ordered recount determined she beat rival Michael Di Biase by 90 votes.

The last such audit in Ontario resulted in 41 charges being laid against the then-mayor of Hamilton.

Larry Di Ianni pleaded guilty in August 2006 to six counts of violating the Municipal Elections Act and ultimately was not re-elected.

"These audits can lead to very serious repercussions,'' Gillespie said.