## Multi-State Cooperative Societies (MSCS) — Accounts & Auditor Framework
A Multi-State Cooperative Society (MSCS) operates across more than one state and is governed by the Multi-State Cooperative Societies Act.
### Books of Accounts to Be Maintained
Every MSCS must maintain books of account showing:
| # | Particulars |
|---|---|
| (a) | All sums of money received and expended |
| (b) | All sales and purchases of goods |
| (c) | Assets and liabilities |
| (d) | For MSCS engaged in production, processing, or manufacturing → Particulars of: Materials, Labour, and each Item of cost |
### Qualification of Auditor
Eligible: A Chartered Accountant (CA).
Ineligible persons:
| Category | Reason |
|---|---|
| Body Corporate | Cannot be appointed as auditor |
| Officer or employee of MSCS | Lacks independence |
| Member of the society | Lacks independence |
| Person indebted to MSCS for > ₹1,000 | Financial interest |
| Person who has given guarantee or provided security for or to MSCS | Financial interest |
### Appointment of Auditors
First Auditor:
- Appointed by the Board of Directors within one month of registration.
- Holds office until the first AGM.
- If the Board fails to appoint → members may appoint at a general meeting.
Subsequent Auditors:
- Appointed at each AGM.
- Serve from one AGM until the conclusion of the next AGM.