Section 50 in The Chhattisgarh Co-operative Societies Rules, 1962
50. Procedure for conducting audit.
(1)The person authorised by the Registrar to audit the accounts of a society under sub-section (i) of Section 58 (hereinafter referred to as auditor in this rule) shall submit an audit note to the Registrar in the form specified by the Registrar on the accounts examined by him and on the balance sheet and profit and loss account as on the date and for the period upto which the accounts have been audited and shall state whether in his opinion and to the best of his information and according to the explanation given to him, the said accounts give all the information required by the Act in the manner so required and give true and fair view-(i)in the case of the balance sheet, of the state of society's affairs as at the end of the co-operative year upto which the accounts are made up and examined by him; and(ii)in the case of profit and loss account, of the profit or loss for the co-operative year.(2)The audit note shall state-(i)whether the auditor has obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of his audit;(ii)whether in his opinion proper books of accounts, as required by the Act, these rules, the bye-laws of the society and the Registrar have been kept by the society so far as it appears from the examination of these books; and(iii)whether the balance sheet and profit and loss account examined by him are in agreement with the books or accounts and returns of the society.(3)Where any of the matters referred to in sub-rule (2) are answered in the negative or with a qualification, the audit note shall specify the reasons for the answer.(4)The audit note shall also contain full particulars of-(i)all transactions which appear to be contrary to the provisions of the Act, these rules or the bye-laws of the society;(ii)all sums which ought to have been but have not been brought into account by the society;(iii)any material impropriety or irregularity in the expenditure or in the realisation of moneys due to the society;(iv)any money or property belonging to the society which appears to the auditor to be bad or doubtful debt; and(v)any other matters specified by the Registrar in this behalf.(5)The Registrar may direct that any portion of the audit note which appears to him to be of an objectionable nature or not justified by facts shall be expunged and the portion so expunged shall not form part of the audit note.(6)The Registrar may from time to time specify the form or forms in which the statements of accounts and information shall be prepared for audit by the society.(7)On completion of his audit, the auditor shall award an audit classification to the society whose accounts have been audited by him in accordance with the instructions issued by the Registrar from time to time. The Registrar may, if he thinks necessary, amend the audit classification for reasons to be recorded in writing.
