Rights and Duties of auditor in

co-operative society

SUBMITTED TO: SUBMITTED BY:

Regional Institute of AMANDEEP SINGH
Co-operative INSPECTOR AUDIT
Management Roll No: 70
The term audit means-
 Examination of books of account and vouchers so as to
establish their accuracy .

It is defined as -
 “a systematic examination of financial statements,
records and related operations to determine adherence
to generally accepted accounting principles,
management policies or stated requirements.”
 Audit of Co-operative Society
 Let us now discuss the provisions for Audit as Per Section
48 of the Punjab Co-operative Societies Act, 1961

 The accounts of every registered society shall be audited

or cause to be audited by some person approved by the
General Body of the society once at least every year.

 The Audit shall also include an examination of overdue

debts, if any, and a valuation of the assets and liabilities of
the society.
Rights of Auditor in co-operative
society
Rights Of Auditor of co-operative
society
Right of access to book, vouchers and other files
required for audit .
Right to seek the information and explanation
from the officer/officials.
Right to receive the notices and other
communications.
Right to visit branch offices/ societies and access
their accounts.
Rights Of Auditor of co-operative
society
Right to seek opinion of experts in performance of
his/her duty.

Right to receive remuneration.

Right to sign and certified the audit reports/audit

notes
Duties of auditor of Co-operative
society
Duties of auditor of Co-operative
society
 An Auditor should be well-versed with the
Punjab Co-operative Societies Act, 1961 and the
by-laws of the society.
All the assets & libilities, expenses, income, cash-
in-hand, etc. should be vouched and verified
according to standard accounting procedures and
principles.
Duties of auditor of Co-operative
society
 An Auditor should be well aware of power of
officers regarding loan, investment, borrowings,
advancing of the funds.
He should go through the agreements between
society and borrower to check the interest due
on loan and repayment schedule. An Auditor
should also check and compare the actual interest
received and the repayment of loan received with
dues from them.
Duties of auditor of Co-operative
society
 If there is any type of irregularities and
improprieties found by an Auditor during his audit
regarding Punjab Co-operative Societies Act, 1961 and
by-laws, he should immediately point out the same.

 Checking of physical verification (P.V) reports of

assets, stationery and cash.
 An Auditor should ascertain that how many shares
are held by each member of the society; for this, he
should check the member ship registers.
Duties of auditor of Co-operative
society
Pre audit/ Post audit of items as per given rules.
Writing & certify the audit reports/audit notes.
Compliance of audit paras
Audit report shall be submitted to the Society
and also to the Registrar, Co-operative societies.
Duties of auditor of Co-operative
society
Balance-sheet, profit and loss account and Auditor
report should be according to the performa given
by the Chief Auditor of the Co-operative Society of
the State.
 Accounts should be according to the Co-operative
Society Act and also with the provision of Income
Tax Act.
Advantages of Audit
 Detection of error and frauds
 Fulfillment of statutory requirements
 Members of the organisation (society) can be aware
about the affairs of the society.
 Authenticity of the accounts can be ensured.
 Audited accounts are able to find trust amongst the
stakeholders.
 In case of fraud or irregularities, action can be taken
on the basis of audit report.
Limitations of Audit
 Audit is subject to inherent limitations of sampling
and other audit methodologies.
 Audit is time consuming.
 Audit staff causes hindrance in routine work of the
society and hence not welcomed by the organisational
staff.
 It increases cost of operations of the organisations.
 An auditor is treated as unwelcomed guest in the
society
Thank you