Page 278 - CA Inter Audit PARAM

CA Ravi Taori
QNO Audit Report- Old Course-- (M20R)
AOC.09 Bhaskar CNO - AOC.100
"As per Multi-state Co-operative Societies Act, 2002, the auditor shall make a report to the members of the
Multi-State co-operative society on the accounts examined by him and on every balance-sheet and profit

and loss account and on every other document required to be part of or annexed to the balance-sheet or
profit and loss account. Explain"
Answer
➢ As per sub-section (3) & (4) of section 73 of Multi- state Co-operative Societies Act, 2002, the auditor
shall make a report to the members of the Multi -State co-operative society on the accounts examined
by him and on every balance-sheet and profit and loss account and on every other document required
to be part of or annexed to the balance-sheet or profit and loss account, which are laid before the Multi
-State cooperative society in general meeting during his tenure of office, and the report shall state
whether, in his opinion and to the best of his information and according to the explanation given to him,
the said account give the information required by this act in the manner so required, and give a true and
fair view:

In the case of the balance-sheet, of the state of the Multi-State co-operative society’s affairs as
at the end of its financial year; and
In the case of the profit and loss account, of the profit or loss for its financial year. The auditor’s
report shall also state:
• Whether he has obtained all the information and explanation which to the best of his
knowledge and belief were necessary for the purpose of his audit.
• Whether, in his opinion, proper books of account have been kept by the Multi- State
co-operative society so far as appears from his examination of these books and proper
returns adequate for the purpose of his audit have been received from branches or
offices of the Multi -State co-operative society not visited by him.
• Whether the report on the accounts of any branch office audited by a person other
than the Multi-State co-operative society’s auditor has been forwarded to him and
how he has dealt with the same in preparing the auditor’s report.
• Whether the Multi-State co-operative society’s balance sheet and profit and loss
account dealt with by the report are in agreement with the books of account and
return.

Where any of the matters referred to in sub-section (3) or (4) is answered in the negative or with
a qualification, the auditor’s report shall state the reason for the answer.

Special Features of Co-Operative Audit (Audit Classification & Draft Old Course-- (N20E)
QNO Audit Report)
AOC.10
Bhaskar CNO - AOC.060
You are appointed as an auditor of co-operative society. State the special features of the co-operative audit
to be borne in mind by the auditor, concerning.

(1) Audit classification of society.
(2) Discussion of draft audit report with the managing committee.
Answer ➢ Audit classification of society.
After a judgement of an overall performance of the society, the auditor has to award a class to the

society. This judgement is to be based on the criteria specified by the Registrar. It may be noted here
that if the management of the society is not satisfied about the award of audit class, it can make an
appeal to the Registrar, and the Registrar may direct to review the audit classification. The auditor
should be very careful, while making a decision about the class of society.

➢ Discussion of draft audit report with the managing committee.
On conclusion of the audit, the auditor should ask the Secretary of the society to convene the managing
committee meeting to discuss the audit draft report. The audit report should never be finalised without
discussion with the managing committee. Minor irregularities may be got settled and rectified. Matters
of policy should be discussed in detail.

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