Section 45 in The Jammu and Kashmir Dissolution of Muslim Marriages Act, 1999 (1942 A.D.)
45. Audit.
(1)A cooperative shall get its accounts audited by a chartered accountant within the meaning of the Chartered Accountants Act, 1949.(2)A cooperative, at its annual general meeting, shall resolve to appoint a chartered accountant as auditor. This resolution will be valid only until the close of the next succeeding annual general meeting.(3)The remuneration of an auditor may be fixed by the general body or, if not so fixed by the board.(4)An auditor ceases to hold office when the auditor-(a)resigns;(b)is removed from office under sub-section (6); or(c)completes his/her term of office;(5)The resignation of an auditor becomes effective at the time a written resignation is received by the cooperative, or at the time, specified In the resignation whichever is later.(6)The general body may by a special resolution, remove an auditor from office.(7)An auditor who,-(a)resigns; or(b)receives a notice or otherwise learns of a general meeting called for the purpose of removing him/her from office,is entitled to submit to the general body a written statement giving the reasons for his/her resignation or the comments on the proposed removal, as the case may be.(8)A vacancy created by the resignation or the removal shall be filled up by the general body. An auditor appointed to fill a vacancy holds office for the un-expired term of his/her predecessor.(9)The auditor shall be given notice of every general meeting and at the expense of the cooperative will be entitled to attend and be heard thereat on matters relating to his/her duties as auditor and their exercise.(10)It shall be the duty of the board to ensure that annual financial statements are prepared and presented for audit within forty-five days of closure of the cooperatives financial year.(11)Upon the reasonable demand of the auditor of a cooperative, the present or former directors, members, managers or employees of the cooperative shall,-(a)provide such access to records, documents, books accounts and vouchers of the cooperative ; and(b)furnish such information and explanations,as are, in the opinion of the auditor, necessary to enable him/her to make the examination and report, and as the present or former director, members, managers, or employees are reasonably able to furnish.(12)It shall be the duty of the auditor to ensure that audited annual financial statements and his/her accompanying report are furnished to the cooperative within forty five days of the submission of annual financial statements by the board.(13)The auditor's report to the members of the cooperative shall,-(a)state whether the auditor has obtained all the information and explanations which to the best of his/her knowledge and belief were necessary for the purpose of his/her audit;(b)state whether the cooperatives balance sheet and income and expenditure account dealt with by the report are in agreement with the books of accounts:(c)indicate the basis on which each asset and liability was valued, and make specific mention of any change in the manner in which such valuation was done in the year under examination and its effect on surplus/deficit;(d)indicate the amount of surplus earned/deficit incurred from provision of services to non-members as distinct from surplus/ deficit accruing because of members or in normal course of business;(e)indicate every deviation in actual expenses and income from the estimated expenses and income in the approved budget;(f)state whether or not any of the directors had at any time during the year under review become ineligible under this Act to continue in office as a director; and(g)state whether the decisions on disposal of surplus or assessment of deficit, of the general body, at its previous annual general meeting were implemented correctly and completely or not.
