Rule 27 - Audit and Accounts - Multi-State Cooperative Societies Rules, 2002

Audit and Accounts 27. (1) Every Multi-state cooperative society shall keep books of account with respect to:- (a) all sums of money received and expended and the matters in respect of which the receipt and expenditure take place; (b) all sales and purchase of goods; (c) the assets and liabilities; (d) in the case of a Multi-state cooperative society engaged in production, processing and manufacturing, particulars relating to utilisation of materials or labour or other items of costs as may be specified in the bye-laws of such a society. (2) The audit of a multi-state cooperative society under sub-section (1) of section 73 shall include, in addition to the matters specified in sub-section (2) of that section the following particulars: (a) Whether the auditor has obtained all the information and explanations which, to the best of his knowledge and belief are necessary for the purposes of his audit; (b) Whether in his opinion proper books of accounts as specified in these rules and bye-laws have been kept by the Multi-state cooperative society so far as it appears from the examination of those books and proper returns adequate for the purposes of his audit have been received from the branches not visited by him; (c) Whether the balance-sheet and profit and loss account exhibit a true and fair view of the state of affairs of the Multi-state cooperative society according to best of his information and explanation given to him and as shown by the books of the multi-state cooperative society; and (d) Whether there has been any material impropriety or irregularity in the expenditure or in the realisation of money due to the multi-state cooperative society; (e) Whether in case of a cooperative bank, the guidelines issued by the Reserve Bank and National Agriculture and Rural Development Bank established under the National Agriculture and Rural Development Bank Act, 1981 (61 of 1981) have been adhered to. (3) The audit report shall also contain schedules with particulars of,- (a) all transactions which appear to be contrary to the provisions of the Act, the rules or the bye-laws of the multi-state cooperative society; (b) all transactions which appear to be contrary to the guidelines issued by the Reserve Bank and National Agriculture and Rural Development Bank; (c) any money belonging to the multi-state cooperative society which appears to the auditor to be bad or doubtful of recovery; (d) the loans given by the multi-state cooperative society to the members of the board; (e) any violation of guidelines, conditions etc., issued by the Reserve Bank of India or National Agriculture and Rural Development Bank by any cooperative bank; (f) any other matter as may be specified by the Central Registrar in this regard.