Section 79 in The Delhi Co-operative Societies Rules, 2007
79. Procedure for appointment of auditors and for conducting Audit.
(1)The audit of the accounts of the co-operative society shall be conducted by an auditor selected by the co-operative society from the panel of Chartered Accountant drawn by the Registrar after every three years by giving due publicity through two leading daily newspapers. The committee of the co-operative society while selecting the Chartered Accountant as auditor shall inform the Registrar within fifteen days of such selection and shall follow the guidelines and instructions issued by Registrar from time to time :Provided that the Registrar shall draw a panel of auditors atleast six months before the expiring of the term of previous panel so that the statutory audit is complete in time as required under section 60 of the Act, or also to file Income Tax Returns as prescribed under the law.(2)The committee shall ensure that the audit of the co-operative society is complete within the period as provided under sub- section (1) of section 60 of the Act to enable it to place the report before annual general body meeting and also to file Tax Returns in time as prescribed under the Tax Laws. The committee shall also ensure that the Auditor selected by the co-operative society has not exceeded the limit of prescribed number of audits specified by the Registrar under these rules. The auditor appointed out of the panel of Chartered Accountants shall conduct audit of at least three Co-operative societies whose turnover is less than rupees five lakhs and shall charge audit fee at the rate of rupees five hundred from each co-operative society per year and may conduct audit of any other five co-operative societies-Provided further that in-case of special audit, the auditor shall be appointed by the Registrar.(3)If in the opinion of the Registrar, any of the auditor included in the panel of auditors is found indulging in corruption, malpractice, mis-conduct or professional misconduct and refusing (at least twice) to accept the audit assigned to him repeatedly, the Registrar, may, delete his name from the panel of auditors.(4)The audit fee fixed by the Registrar shall be paid to the auditor by the co-operative society directly on the receipt of audit report acknowledged by the Cooperative Department.(5)While fixing charges on account of services rendered by the auditors which are payable to them, the Government shall beside other things' have regards to the turnover or sale or working capital of the co-operative society.(6)The amount fixed under sub-rule (2) above, and the amount payable to the certified auditors, appointed by the Registrar, shall be paid to them directly.(7)An auditor can undertake the audit of a co-operative society for a maximum period of not more than three years continuously.(8)A Chartered Accountant shall not be appointed as auditor of the co-operative society if, he holds membership in that co-operative society or an employee of that co-operative society.Explanation I. - For purposes of this Chapter, audit shall include technical and special audit, concurrent audit and re-audit. However in case of re-audit and special audit Registrar shall not pass order without giving reasonable opportunity to the co-operative society and the auditor concerned.Explanation II. - Concurrent Audit shall be conducted in respect of the following type of cooperative societies by the auditor appointed under the Act: -(a)All co-operative housing societies, which have been allotted land until the construction of buildings and super structure is completed;(b)Delhi Co-operative Housing Finance Corporation Limited and Delhi Consumer Co-operative Wholesale Store Limited, in case internal auditor has not been appointed;(c)Co-operative Societies / Federations whose turnover exceeds rupees five crores :Provided that in case of Financing bank and Co-operative urban banks, concurrent auditor shall be appointed in terms of guidelines issued by NABARD/Reserve Bank of India, as the case may be.
