Short Answer

Auditors can charge society expenses for travel or stationary, but it should be reasonable and necessary. The society can include these charges in maintenance if they are justified.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 empowers the society to appoint an auditor for auditing its accounts. The remuneration payable to the auditor, including expenses incurred during the audit, is decided by the society. However, Rule 90 of the Gujarat Cooperative Societies Rules, 1965 specifies that the remuneration should be reasonable and necessary. This means that auditors can charge society expenses for travel or stationary, but it should be justifiable and in line with the work performed.

In practice, auditors may incur expenses such as travel costs for visiting the society's premises, stationary for preparing audit reports, etc. These expenses are essential for conducting a thorough audit and ensuring compliance with legal requirements. The society can include these charges in maintenance if they are directly related to the audit process and are reasonable. Including such expenses in maintenance ensures that the financial burden is shared among all members of the society.

Real-world Scenarios

• Scenario 1: An auditor travels to a remote location to audit a cooperative society. The auditor incurs travel expenses for transportation and accommodation. These expenses are necessary for conducting the audit effectively and can be charged to the society.

• Scenario 2: The auditor purchases stationary items such as audit papers, pens, and folders for preparing audit reports. These stationary expenses are essential for maintaining proper records and can be included in the maintenance charges of the society.

Reference

• Section 81 of the Gujarat Cooperative Societies Act, 1961

• Rule 90 of the Gujarat Cooperative Societies Rules, 1965