Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Section 81 audit
An annual statutory audit under the co-operative law, mandatory regardless of the society’s size.
Panel auditor + Registrar
The auditor must be from the government-approved panel, and the audit report (and rectification report) is filed with the Registrar.
The annual cycle and rectification
The society’s managing committee appoints a panel auditor at the annual general meeting, and the audit for the year ending 31 March is to be completed by 31 July, with the report submitted to the Registrar. The auditor also classifies the society into an audit grade (A to D). Wherever the report raises objections, the committee must file a rectification report — in Form O — with the Registrar, explaining the action taken. This co-operative audit is separate from any income-tax filing the society may have. Keeping clean member ledgers, maintenance records and the sinking and repair fund accounts through the year makes the audit and its grade far smoother. A society also has to place the audited accounts before its general body, so finishing the audit on time is what lets the AGM be held within the period the law allows.