## Audit of Cooperative Societies
### Definition
A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs through a jointly owned enterprise.
It is a business organisation that:
- Pools all means of production co-operatively
- Eliminates middlemen
- Eliminates exploitation from outside forces
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### Law Governing Cooperative Societies
| Type | Governing Law |
|---|---|
| Cooperative Societies (general) | Cooperative Societies Act, 1912 (Central Act) |
| Multi-State Cooperative Societies | Multi-State Cooperative Societies Act, 2002 |
| State Cooperative Societies | Respective State Acts (e.g., APCSA, TNCSA, MCSA) |
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### Professional Services Rendered by CA to Cooperative Societies
- Guidance in accounts writing
- Installation of accounting system
- Internal audit
- Management accounting services
- Taxation
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### Powers of the Registrar (Audit Power)
- The Registrar shall audit or cause to be audited (by a person authorised by general or special order in writing) the accounts of every registered society at least once every year.
- The Registrar and the Collector shall at all times have access to books, accounts, papers, and securities of a society.
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### Qualification of Auditor
Apart from a Chartered Accountant, some State Cooperative Acts also permit:
- Persons with a government diploma in cooperative accounts and accountancy
- Persons who have served as an auditor in the cooperative department of a government
> Note: This is broader than most other audit assignments where only a CA qualifies.
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### Appointment of Auditor
- Appointed by the Registrar
- Auditor submits report to the Registrar and the Society
- Audit fees paid by the society as per the statutory scale of fees prescribed by the Registrar