Section 231

Where during the course of audit of a co-operative society serious irregularities leading to embezzlement or misappropriation of funds, or stocks are detected or suspected the auditor shall, without discontinuing the audit inform confidentially his superior officer, if any, the Registrar and also the Chairman or the Secretary of the society, if such information to the Chairman or the Secretary is not likely to be prejudicial to further enquiries in the matter or to the interest of the society.