Short Answer

The society's auditor must be licensed specifically for societies.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 states, "The audit of the accounts of a society shall be conducted by a person who is a chartered accountant within the meaning of the Chartered Accountants Act, 1949." This means that the auditor of a cooperative society must be a licensed chartered accountant under the Chartered Accountants Act, 1949, and not just any CA suffices.

In practice, this requirement ensures that the auditor handling the financial records of a cooperative society possesses the necessary qualifications and expertise to perform a thorough and accurate audit. By mandating a licensed chartered accountant, the Act aims to maintain the integrity and transparency of the audit process, safeguarding the interests of the society and its members.

For example, if a cooperative housing society in Gujarat needs to conduct its annual audit, they must engage a chartered accountant who is duly licensed and registered under the Chartered Accountants Act, 1949. This ensures that the audit is carried out in compliance with the legal requirements and professional standards, providing assurance to the society members regarding the accuracy and reliability of the financial statements.

Another scenario could involve a cooperative credit society seeking to verify its financial transactions and accounts. In this case, the society must appoint a licensed chartered accountant to conduct the audit, as mandated by Section 81 of the Act. This requirement helps in upholding financial discipline and accountability within cooperative societies.

Overall, the provision in Section 81 of the Gujarat Cooperative Societies Act, 1961 emphasizes the importance of having a qualified and licensed chartered accountant to audit the accounts of cooperative societies, ensuring credibility and adherence to regulatory standards.

References

• Section 81 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]