Procedure for Appointment of Auditor of Coop Society

06
Oct

The 97th Amendment to the Constitution of India has made Annual Audit of every Cooperative Society mandatory. The power to appoint an auditor for conducting the said audit vests in the General Body of the society. The Section 81 of Maharashtra Cooperative Societies Act 1960 has accordingly been amended and the relevant extract of the Section is enclosed herewith:

81. Audit.—

(1) (a) The society shall cause to be audited its accounts at least once in each financial year and also cause it to be completed within a period of six months from the close of financial year to which such accounts relate and in any case before issuance of notice of the holding of annual general body meeting, by auditor or auditing firm from a panel prepared by the Registrar and approved by the State Government or an authority authorised by it in this behalf, possessing required qualifications and experience as may be prescribed to be eligible for auditing accounts of societies, appointed by the general body of a society, as provided in sub – section (2A) of section 75 and shall lay such audit report before the annual general body meeting. In case of apex society, the audit report shall also be laid before both Houses of the State Legislature, in such manner, as may be prescribed:

Provided that, if the Registrar is satisfied that the society has failed to intimate and file the return as provided by sub – section (2A) of section 75 and sub-section (1B) of section 79, by order, for the reasons to be recorded in writing, he may cause its accounts to be audited, by an auditor from the panel of the auditors approved by the State Government or an authority authorised by it in this behalf:

Provided further that, no auditor shall accept audit of more than twenty societies for audit in a financial year excluding societies having paid up share capital of less than rupees one lakh:

Provided also that, the Registrar shall maintain a panel of auditors and auditing firms as approved by the State Government or an authority authorised by it in this behalf;

(b)          the manner of preparation, declaration and maintenance of the panel of auditors and auditing firms by the Registrar shall be such as may be prescribed;

(c)          the board of every society shall ensure that the annual financial statements like the receipts and payments or income and expenditure, profit and loss and the balance-sheet along with such schedules and other statements are audited, within the prescribed period;

(d)          The Registrar shall submit the audit report of every apex co-operative society to the State Government annually for being laid before the both Houses of the State Legislature in the manner prescribed;

(e)          The auditor’s report shall have,-

(i) all particulars of the defects or the irregularities observed in audit and in case of financial irregularities and misappropriation or embezzlement of funds or fraud, the auditor or the auditing firm shall investigate and report the modus operandi, the entrustment, amount involved, and fix the responsibility for such misappropriation or embezzlement of funds or fraud, on the members of the committee or the employees of the society or any other person, as the case may be, with all necessary evidence;

(ii)          accounting irregularities and their implications on the financial statements
to be indicated in detail in the report with the corresponding effects on the profit and loss;

(iii)         the functioning of the committee and sub-committees of the societies be checked and if any irregularities or violation are observed or reported, duly fixing the responsibilities for such irregularities or violations;

(f)           the remuneration of the auditor or auditing firm of a society shall be borne by the
society and shall be at such rate as may be fixed by general body of the society;

(g)          the Registrar shall maintain the list of societies district-wise, the list of working
societies, the list of societies whose accounts are audited, the list of societies whose accounts are not audited within the prescribed time and reasons therefor. The Registrar shall co-ordinate with the societies and the auditors or auditing firms and ensure the completion of audit of accounts of all the co-operative societies in time every year.
 Explanation-I.- For the purposes of this section, the expression, “possessing required qualifications ” for being included in the panel duly approved by the State Government or an authority authorised by the State Government in this behalf, from time to time shall, mean and include –

(a)       a person who is a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949, who has a fair knowledge of the functioning of the Societies and an experience of atleast three years in auditing of societies with a working knowledge of Marathi language;

(b)    “auditing firm” means a firm of more than one Chartered Accountant within the meaning of the Chartered Accountants Act, 1949, who have a fair knowledge of the functioning of the societies and an experience of atleast three years in auditing of societies with a working knowledge of Marathi language;

(c)  “a certified auditor” means a person who holds a Degree from recognised University and also has completed a Government Diploma in Co-operation and Accountancy and having a fair knowledge of the functioning of the societies and who has an experience of atleast five years in auditing of societies with a working knowledge of Marathi language;

(d)    “Government Auditor” means an employee of the Co-operation Department of the State, possessing the Graduation or Post Graduation Degree, in addition to the Higher Diploma in Co-operative Management or the Diploma in Co-operative Audit or Government Diploma in Co-operation and Accountancy with a working knowledge of Marathi language and who has completed the period of probation successfully;

Explanation II.- The terms and conditions for inclusion and retention of name as an auditor or auditing firm in the panel of auditors shall be subject to the terms and conditions, as may be prescribed.’’

By 0
  •  
  •  
  •  
  •  
  •  
3.56 Your Rating
(0) Comments
Post Comments

Leave your Comments




Featured Posts

How to Add new Fixed Assets? ..

Please find the below step to add new fixed assets:-  A. Create GL Account Step 1:- Go to Acc...

How to Create GL Account? ..

Please follow the below step to create / Add GL account:-  Step 1:- Go to Settings Step...

How to raise a Complaint for ..

Please find below steps for Log a Complaint:- Step 1:- Go to Home Page Step 2:- Click on Complaint...

How to send Others SMS? ..

Please find below steps for sending sms notification to the members:- Step 1:- Go to Home Page St...

How to send Email Notificati ..

Please find below steps to send the email notification to the members:- Step 1:- Go to Home Page ...

How to Create Events for Res ..

Please find below steps for creating Event:- Step 1:- Go to Events Button Step 2:- Click on ...

How to Upload Photos ? ..

Please find below steps for upload photos:- Step 1:- Go to Album Tab Step 2:- Click on Create Alb...

How to Create Polling Booth? ..

Please find below steps to create a poll:- Step 1 :- Go to Forum Tab Step 2:- Click on Pooli...

How to Create Notice and Cir ..

Please find below steps for creating Notice and Circulars:- Step 1:-  Go to Forum Tab Step 2...

How to create Forums? ..

Please find below steps for creating forum:- Step 1:- Go to Home Page  Step 2:- Click on...

How do I update emergency co ..

Please find below steps for update emergency contact :- A) Add Emergency Contact Number:- Ste...

How to set Member due remind ..

Please find below steps for FD maturity reminder, Nominees reminder or Member due reminder:-  ...

How do I get vacant flat rep ..

Please follow the below step to get the vacant report:-  Step 1:- Login into the societynmore....

How to raise Supplementary b ..

Please find below steps to raise Supplementary bill Or Debit note Or Adhoc invoice to the membe...

How to pass a credit note or ..

Please find below steps to passing credit note or advance payment to the member:-   Credit no...

How to do bulk upload of cre ..

Please find below steps to do the bulk upload of Credit note / Excel upload of credit note:- Step 1...

How to set up parking charge ..

Please follow the below step update parking details:-  A.Setup Charges for parking:- Step 1:-...

How to upload bulk receipt e ..

Please find below steps to upload bulk receipt entry:-   A) Download Payment excel Step 1: -...

How to update Bank details? ..

Please follow the below step to update the bank details:-  Step 1:- Go to the Home Page Step...

How to update Property detai ..

Please follow the below step to update property details:-  Step 1:- Go to the Home Page Step...

How to pass a receipt or pay ..

Please find below step to pass a receipt/payment entry:- Step 1:- Go to the Billing Button S...

How to Edit or correct the p ..

Please find below step for Edit/correct the payment details in posted receipts/payments:- Step...

How to Edit Or correct the p ..

Please find below step for Edit/Correct the posted invoice:- Step 1:- Go to the Billing Button St...

How to start forum or activi ..

Please follow the below step for starting the topic:-  Step 1:- Go to the Home Page Step 2:- ...

How to create forum group? ..

Please find the below step to create a forum subgroup:-  Step 1:- Go to the Home Page Step 2...

How to change a profile pict ..

Please find the below step to change/update profile picture:-  Step 1:- Go to the Home Page S...

How to view the employee lis ..

Please find the below step to view the employee list:- Step 1:- Go to the Home Page Step 2:- Clic...

How to print all Receipt in ..

Please find below steps to print bulk receipts:- Step 1:- Go to the Billing Button Step 2:- Manag...

How to print the Maintenance ..

Please find below step to get a print out of Maintenance invoice:- Step 1:- Go to the Billing Butto...

How to get interest calculat ..

Please find below steps to get Interest calculation report:- Step 1:- Go to the Billing Button St...

How to cancel a facility boo ..

Please follow the below step to cancel a facility booking:-  Step 1:- Go to the Homepage Step...

How to get invoice report? ..

Please find below steps to get Invoice report:- Step 1:- Go to the Billing Button Step 2:- Click o...

How can user book the facili ..

Please follow the below step to book a facility:-  Step 1:- Go to the Home tab Step 2:- Click...

How to get supplementary bil ..

Please find below steps to get Supplementary bill report:- Step 1:- Go to the Billing Button Step ...

How to get cheque deposit sl ..

Please find below step to get Cheque deposit slip / Pay slip list:- Step 1:- Go to the Billing Butt...

How to set up facility? ..

Please follow the below step to add / setup facility:- (Admin can do the facility setup) A. Add Fac...

How to get Receipt report? ..

Please find below steps to get Receipt report:- Step 1:-Go to the Billing Button Step 2:- Click on...

How to Add or join member in ..

Please follow the below step to add a member to the system/portal:-   Step 1:- Go to the ...

How to get report of payment ..

Please find below step to get Report of payment gateway transaction Step 1:- Go to the Billing Butt...

How to get members due summa ..

Please find below steps to find out Members due summary report Step 1:-Go to the Billing Button St...

How to get members bill due ..

Please find below steps for Members Bill due report:- Step 1:- Go to the Billing Button Step 2:- C...

How to add Office Staff and ..

Please find the below step to add office staff/employee and give him access:- A.Create a Type (Mana...

How to change or upload the ..

Please follow the below step to update the Banner:-  Step 1:- Go to the Home Button Step 2:- ...

How to set up society profil ..

Please follow the below step to set up a profile page:- Step 1:- Click on Home Button -- >>Cl...

How to add employee Or offic ..

Please follow the below step add office staff/ society employee : Step 1:- Go to the Home Page Ste...

How to change employee passw ..

Please follow the following steps to change password : Step 1:- Go to the Home Page Step 2:- ...

FAQs for GST ..

Q1) What is GST? Ans - GST is one indirect tax for the whole nation, which will make India one...

Applicability of GST to Hous ..

GST is applicable to Housing Society because it is covered under the definition of Person under the ...

A Comprehensive guide to GST ..

Goods & Services Tax (GST) is now a unified indirect tax for the whole nation. GST is a destinat...

Guidance on issuance of NOCs ..

NO Objection Certificates (NOCs) are required by members of Society for various purposes. NOCs may b...

Registers Records and Accoun ..

Every Cooperative Housing Society  is required to maintain Books of Accounts/ Registe...

Audit Compliances for Societ ..

It is a must to adopt model Bye laws of Hosing Society, as per 97th constitutional amendment 2013. I...

How much water is your Home ..

Thirsty for Knowledge? Let's Learn about water. The water crisis in Navi Mumbai and areas like ...

Are you having hard time dec ..

  "All worries one Solution Societynmore.com !" Societynmore provides you with ...

Guidance for Society Electio ..

For Election process of D category Societies refer  rule 76  in Maharshtra Election Rules ...

Some Frequently Asked Questi ..

Q. Please advice is it possible to get Deemed conveyance of leasehold property. Society is paying le...

Guidance on Levy of Maintena ..

The contribution to be collected from the Members of the Society, towards Maintenance charges f...

Associate Membership ..

As per MCS Act 1960 read with MCS Rules 1961, any person whose name stands 2nd or 3rd in the Agreeme...

SIMPLE MEASURES TO STRENGTHE ..

Unfortunately, as technology has been growing at one end, it is giving birth to a number of des...

BENEFITS OF WATER ..

Benefits of water can be reaped and enjoyed if you contribute towards conservation on water. We...

HEALTH BENEFITS OF DARK CHOC ..

Anything in extreme leads to disastrous results. Whether it is food or exercise, small amount/ porti...

FREE WI-FI? BEWARE ..

It is in many people’s gene to take an undue advantage of every freely provided...

XIAOMI: MIRACULOUS COMPETITO ..

Tick-tock, tick-tock and Xiaomi Mi3’s 20000 units gets sold out within the...

WHEN YOU CONSERVE WATER, YOU ..

‘A drop of water is worth more than a sack of gold to a thirsty man’. This quote truly d...

FLY GEYSER: GIGANTIC MANMADE ..

With its first look, any individual will assume it’s a fancy water fountain and an amazing tou...

FAT BURNING DIET ..

“Progress is impossible without change and those who cannot change their minds cannot cha...

ENTREPRENEURSHIP YOU HAVE IT ..

Gone are the days when Indian women were forced to stay at home, forcefully covering themselves in a...

TOURISM HAWAII ..

Ever dreamt of a nature’s paradise where you can witness volcano, waterfalls, beautiful beache...

ONE CAUSE WITH THE UNIQUE CL ..

Don’t we consider donkey as one of the most under-rated and ill-treated animal in In...

BENEFITS OF KIWI FRUIT ..

Don’t you get attracted toward the brilliant green colour of this cutest fruit called ‘K...

WAYS OF EASY FEET CARE ..

According to a Chinese saying, “The journey of a thousand miles begins with a small step." Do...

THE SACREDNESS OF GURUVAYUR ..

The serenity of temples wrapped in the beautiful and enormous greenery is a perfect fit for its defi...

UNIQUE PROFESSIONS AROUND TH ..

              We all work hard, and have been taught to have...

SOCIAL MEDIA MARKETING ..

The Entrepreneurship Summit at IIT couldn’t have gotten any better with all the correct notes ...

LIFE'S TOO SHORT TO BUILD ST ..

Yet another fruitful session at IIT and it just couldn’t get any better than this.  In an...

THE THREE MUSKETEERS OF E-CO ..

It was indeed a great pleasure and learning experience to attend and listen the panel discussion arr...

BEYOND EDUCATION ..

It is said, “The actual learning starts after your education and college days are over.”...

EATERY REVIEW: JAIN SABKUCHH ..

Aaaye halloo re halloo... We all get entranced in the garba fever when Navratri arrives. Everyone fe...

BRIDAL WEAR TRENDS THIS WEDD ..

Among thousands of guests on the wedding day, every eye has the assorted feelings of eagerness, love...

BENEFITS OF MUSIC UNFOLDS ..

“If I were not a physicist, I would probably be a musician. I often think in music. I live my ...

Giving a Child a New Heart ..

Once I get that call, everything changes. I might be out with my children, at the movies with my wif...

Six Healthy Drinks ..

 GREEN TEA should be taken at Lunch Green tea kick-starts metabolism and can help fend ...

Indian diaspora basks in U-1 ..

Indians in Australia are ecstatic over India being crowned the world champions in under-19 cricket, ...

Ship of Theseus- Must Watch! ..

Ship of Theseus presented by Kiran Rao Must See! Simplicity a result of profound thought. Here...