Audit.

(1) Every Co-operative Society registered under this Act shall maintain its accounts for each financial year in such format as prescribed by the Registrar from time to time and shall cause audit of such accounts within six months from the close of the financial year, conforming to Audit Manual and/or Circular instructions issued by the Registrar/Chief Auditor from time to time. There shall be a separate wing for audit in the Co-operative Department headed by the Chief Auditor who will work under the general superintendence and control of the Registrar. Such audit shall primarily cover an examination of debts, overdue, if any, verification of the cash balance and securities and valuation of the assets and liabilities of the society, complete examination and certification of all receipts and expenditure during the financial year including administrative audit focusing on prudent management of the affairs of the society in accordance with the Act, Rules and Bye-laws: Provided that in respect of a society not in receipt of State aid as specified in section 43, the committee of such society shall cause the audit of accounts of the society, every year as per the audit manual prescribed by the Registrar, either through the Chief Auditor or a Chartered Accountant. Where such society opts to get the accounts of the society audited by the Chief Auditor, the latter shall audit or cause to be audited the accounts of such society in the manner prescribed. (2) Every person who is, or has at any time being, an officer or employee of the society and every member including a past member shall furnish such information in regard to, any transaction, working and affairs of the society as the Statutory Auditor may require. (3) The committee shall prepare and submit cause to be prepared and submitted within such period not exceeding six months as may be prescribed the different classes of societies after the end of the Co-operative year, to the Chief Auditor or the person authorised by him as the case may be, such statement and reports as may be prescribed for the purpose of the audit of accounts of the Society for the Co-operative year. (4) The minimum qualifications of the Auditor/Auditing firm entrusted with the responsibility of auditing of co-operative societies under this Act shall be- (i) An officer of the State Government serving in Co-operative department not below the rank of Junior Inspector and possessing a certificate in Audit proficiency issued by CCI/TSCU/ICM. (5) The Registrar shall empanel the Departmental Auditors / Qualified Auditor and Auditing Firms fulfilling the above provisions of this section, every year, while framing necessary guidelines: Provided that in case of the eligible co-operative banks covered under Chapter XIII-A of this Act, the RBI/NABARD shall empanel the Auditors/Auditing firms, while framing necessary guidelines: Provided further that in case of the APCOB/DCCBs covered under Chapter XIII-B of this Act, the NABARD shall empanel the Auditors/Auditing firms, while framing necessary guidelines. (6) It shall be the responsibility of the General body to choose and appoint the Auditor/Auditing firm every financial year to conduct the audit of its accounts. The General body is vested with the power to choose and appoint the Auditor or the Auditing firms approved and empanelled by the Registrar/NABARD/RBI for the purpose: Provided that the General body shall appoint the Auditor or the Auditing firm for auditing the accounts of the Co-operative society for the financial year within six months of its commencement of the financial year for which the accounts are related to: Provided further that the power to appoint the auditor in respect of societies receiving state aid under Section 43 of this Act shall vest with the Chief Auditor. (7) Every Coop. Society shall furnish the financial statements along with necessary enclosures and relevant records and books of accounts to the Auditor or Auditing firm appointed under this Act within one month of the close of financial year, the audit of which is entrusted to the Auditor or Auditing firm. (8) The Chief Auditor shall issue or cause to be issued an Audit Certificate in case of Cooperative Societies for which Departmental Auditor was appointed by the General Body and conducted the audit of the society. The Chartered Accountant Auditor or Auditing Firm shall issue the Audit Certificate for the Cooperative Societies wherever they are appointed as Auditors under this Act by the General Body and conducted the audit of the society: Provided further that, the Audit Certificate issued in case of Audit by the Departmental Auditor or Audit by others, the Audit Certificate shall be in the format as prescribed by the Chief Auditor from time to time: Provided further that in case of any discrepancies or deviations noticed in the Audit procedures or Audit certificate issued by the Chartered Accountant/firm the Government may on the recommendation of the Registrar, order for a test Audit of the society to be conducted by the Chief Auditor and take necessary action against the Chartered Accountant/firm and the Chief Executive of the Society (Primary/Apex) as the case may be. (9) The audited financial statements along with Audit Certificate of an Apex Coop. Society registered under this Act shall be laid before the State Legislature. (10) Failure of the Committee to comply with the above provisions of this section amounts to negligence in the performance of duties of the Managing Committee of the Society as provided under section 34 (1) of this Act.