Section 73(2) in The Multi-State Co-Operative Societies Act, 2002
(2)Without prejudice to provisions of sub-section (1), the auditor shall inquire,—(a)whether loans and advances made by the multi-State co-operative society on the basis of security have been properly secured and whether the terms on which they have been made are not prejudicial to the interests of the multi-State co-operative society or its members;(b)whether transactions of the multi-State co-operative society which are represented merely by book entries are not prejudicial to the interests of the multi-State co-operative society;(c)whether personal expenses have been charged to revenue account; and(d)where it is stated in the books and papers of the multi-State co-operative society that any shares have been allotted for cash, whether cash has actually been received in respect of such allotment, and if no cash has actually been so received, whether the position as stated in the account books and the balance-sheet is correct, regular and not misleading.
