Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The statutory basis
Section 81 of the Maharashtra Co-operative Societies Act, 1960 makes audit compulsory for every co-operative society — housing societies, credit societies and others. It is the co-operative world’s counterpart to a company’s statutory audit, with its own scope and reporting set by the co-operative law and the Registrar.
What the audit covers
The Section 81 auditor verifies the accounts and balance sheet, checks compliance with the Act, rules, bye-laws and Registrar’s directions, examines receipts and payments and members’ contributions, comments on the managing committee’s conduct, and assigns an audit classification (grade). Irregularities and rectifications are reported for the society to act on. Scope details vary by state Act — confirm.
A worked example
Example: a society’s Section 81 audit flags that sinking-fund money was used for routine expenses and some bye-law breaches — the auditor reports these, grades the society, and the committee must rectify. A clean audit, conversely, reassures members and the Registrar. The audit is both a compliance duty and a governance check. Our team can carry out your society’s Section 81 audit.