Section 33(18) in The Karnataka Souharda Sahakari Act, 1997
(18)The audit report shall have,-(a)all particulars of the defects are the irregularities observed in audit and in case of financial irregularities and misappropriation or embezzlement of funds or fraud, the auditor or 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 board or the employees of the cooperative or any other person as the case may be with all necessary evidence.(b)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.(c)the functioning of the general body, board and sub-committees of the Co-operative to be checked and any irregularities or violations observed reported duly fixing the responsibilities for such irregularities or violations.(d)all schedules and other statements as may be prescribed.
