Vidhi Codex

section 45

Audit

The Orissa Self-Help Co-Operatives Act, 2001
General200162 sections8 chapters
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Chapter 6 ACCOUNTABILITY

Statutory text
  1. (1) A co-operative shall get its accounts audited by-
    • (a) a chartered accountant within the meaning of the Chartered Accountants Act, 1949; or
    • (b) by any other auditor, in state auditor’s cadre of Co-operative Societies, on payment of fees to be decided by the Auditor General of Co-operative Societies; or
    • (c) by a retired co-operative auditor/retired government auditor with minimum three years of experience.
  2. (2) The co-operative, in its annual general body meeting shall resolve to appoint an auditor. This appointment shall be valid only until the conclusion of the next succeeding annual general body meeting.
  3. (3) The remuneration of an auditor may be fixed by the general body or, if not so fixed, by the board.
  4. (4) An auditor ceases to hold office when the auditor-
    • (a) resigns; or
    • (b) is removed from office under sub-section (6); or
    • (c) completes his/her term of office.
  5. (5) The resignation of an auditor becomes effective when a written resignation is received by the Co-operative, or at the time specified in the resignation whichever is later, subject to acceptance by the board.
  6. (6) The general body may, by a special resolution, remove an auditor from office.
  7. (7) An auditor, who-
    • (a) resigns; or
    • (b) receives a notice of a general body meeting called for the purpose of removing him/her from office,- is entitled to submit to the general body a written statement giving the reasons for his/her resignation or the comments on the proposed removal, as the case may be.
  8. (8) A vacancy created by the resignation, death or the removal shall be filled up by the general body. An auditor appointed to fill a vacancy shall hold office for the unexpired term of his/her predecessor.
  9. (9) The auditor shall be sent notice of every general body meeting and, at the expense of the Co-operative, will be entitled to attend and be heard on matters relating to his/her duties as auditor and their exercise.
  10. (10) It shall be the duty of the board to ensure that annual financial statements are prepared and presented for audit within forty-five days of closure of the Co-operative's financial year.
  11. (11) Upon the reasonable demand of the auditor of a Co-operative, the present or former directors, members, managers or employees of the Co-operative shall-
    • (a) provide such access to records, documents, books, accounts and vouchers of the Co-operative; and
    • (b) furnish such information and explanations as are, in the opinion of the auditor, necessary to enable him/her to make the examination and report.
  12. (12) It shall be the duty of the auditor to ensure that audited annual financial statements and his/her accompanying report are furnished to the Co-operative, within forty-five days of the submission of annual financial statements by the board.
  13. (13) The auditor's report to the Co-operative shall-
    • (a) state whether the auditor has obtained all the information and explanations, which, to the best of his/her knowledge and belief, were necessary for the purpose of his/her audit;
    • (b) state whether the Co-operative's balance sheet and profit and expenditure account dealt with by the report are in agreement with the books of accounts;
    • (c) indicate the basis on which each asset and liability was valued, and make specific mention of any change in the manner in which such valuation was done in the year under audit;
    • (d) indicate the deficit/surplus, if any;
    • (e) indicate any deviation in actual expenses and income from the estimated expenses and income in the approved budget;
    • (f) indicate whether any director of the Co-operative during the Co-operative business year under audit, become ineligible under this Act to continue in office as a director; and
    • (g) state whether the decisions on disposal of surplus or assessment of deficit, of the general body, at its previous annual general body meeting were implemented correctly and completely or not.

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