Chptr-11.Audit, Enquiry and Inspection

An efficient audit program ensures proper management of the society. Being democratic institution the persons who are related with the society want to known whether the society is going for the common interest of all.

SECTION 63                       

DIRECTOR OF CO-OPERATIVE AUDIT 

Section 63 of the co-operative society act deals with audit. It provides that director of co-operative audit or any body authorized by him audit the accounts of the society at least once a year.

SECTION 64 

SCOPE OF AUDIT - POWERS OF THE DIRECTOR OF CO-OPERATIVE AUDIT AND PROCEDURE FOR AUDIT

AUDIT MEMORANDUM

The auditor shall submit to the registrar, after the audit of a society is finalized an audit memorandum or report in the form prescribed by the registrar. This is concerned with the audit work done by him or the accounts examined by him and on the balance sheet and final account. 

Memorandum will state the following

1. Whether in the opinion of the auditor proper book of accounts have been
    kept as per the act and bye laws

2. Whether he has obtained all the information and explanation for the conduct
    of the audit

3. Whether the final accounts are in tally with the book of account

The memorandum will also contain the schedules with the particular of 

1. All transaction which appear to be contrary to the provisions of the act,
    Rules and bye laws.

2. All sums which ought to have been brought to accounts but not done so by the society.

3. any material irregularity 

4. any money or property are doubtful 

SECTION 65 & rule 66 

ENQUIRY

Section 65 deals with enquiry. An enquiry is held by the registrar to esquire in to the constitution, working and financial condition of a society as and when occasion arises and circumstances warrant it. This is usually held when there are serious irregularities noticed in the working of the society.

The enquiry is ordered at the following circumstances

1. Registrar on his on accord

2. On an enquiry report of the vigilance officer 

3. On a report of the director of co-operative audit.

4. On an application by majority of the committee members