Section 17 in Multi-State Co-Operative Societies (Privileges, Properties and Funds, Accounts, Audit, Winding Up and Execution of Decrees, Orders and Decisions) Rules, 1985
17. Subject-Matter of Audit.
(1)The audit of a multi-State co-operative society under sub-section (1) of section 67-shall include, in addition to the matters specified in subsection (2) of that section, the following particulars:-(a)Whether the auditor has obtained all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of his audit;(b)Whether in his opinion proper books of account as specified in these rules and bye-laws have been kept by the multi-State co-operative society so far as it appears from the examination of those books and proper returns adequate for the purposes of his audit have been received from the branches not visited by him.(c)Whether the balance-sheet and profit and loss account exhibit a true and fair view of the state of affairs of the multi-State cooperative society according to best of his information and explanations given to him and as shown by the books of the multi-State co-operative society; and(d)Whether there has been any material impropriety or irregularity in the expenditure or in the realisation of money due to the multi-State co-operative society.(2)Where in any of the matters referred to in sub-rule (1) the answer is in the negative or in the affirmative with any remark, the auditor shall give reasons for such answer with facts and figures in support of such remarks.(3)The audit report shall also contain schedules with particulars of:-(a)all transactions which appear to be contrary to the provisions of the Act, the rules or the bye-laws of the multi-State co-operative society.(b)any money belonging to the multi-State co-operative society which appears to the auditor to be bad or doubtful of recovery.(c)the loans given by the multi-State co-operative society to the members of the board ; and(d)any other matter as may be specified by the Central Registrar in this regard.(4)The auditor shall make his report to the multi-State co-operative society and also send a copy of that report direct to the Central Registrar. The Central Registrar may for reasons to be recorded in writing, direct that if any portion oF the audit report which appears to him of objectionable nature or not justified, be expunged and the portion so expunged shall not form part of the audit report.(5)The audit report given by the auditors shall be considered by the board of a multi-State cooperative society and placed before the general body with their comments.(6)The defects pointed out by the auditors in the working of the multi State co-operative society shall be specifically considered by the board and a compliance report explaining the measures taken to rectify the defects be submitted to the Central Registrar within three months of the receipt of the audit report.
