Section 33(14) in The Karnataka Souharda Sahakari Act, 1997
(14)Without prejudice to the provisions of sub- sections (4) to (6), the auditor shall inquire;(a)Whether loans and advances made by the co-operative on the basis of security have been properly secured and whether terms on which they have been made are not prejudicial to the interests of the co-operative or its members;(b)Whether transactions of the co-operative which are represented merely by book entries are not prejudicial to the interests of the co-operative;(c)Whether personal expenses have been charged to revenue account;(d)Where it is stated in the books and papers of the co-operative 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; and(e)Whether any special issue or subject matter referred to for inquiry by the Reserve Bank or National Bank has been duly enquired into and report thereof is submitted to the Reserve Bank or National Bank as the case may be.
