Documentation, Records, and Audits
If our society was audited and differences found, how are they communicated to members?
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Short Answer
Differences found during society audits are communicated to members through audit reports and general body meetings.
Detailed Explanation
Section 81 of the Gujarat Cooperative Societies Act, 1961 mandates that every cooperative society shall maintain proper accounts and prepare an annual statement of accounts. Rule 99 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the audit process, stating that the audit report shall be submitted to the Registrar and copies shall be made available to members.
When differences are found during audits, the auditor includes them in the audit report. The audit report details the discrepancies, financial irregularities, or any other issues identified during the audit process. This report is then presented to the general body meeting of the society.
In practice, the audit report is shared with all members of the cooperative society during the general body meeting. The members are informed about the discrepancies found, the reasons behind them, and any corrective actions recommended by the auditor. Members are given an opportunity to discuss the findings, ask questions, and provide their input on the next steps to be taken.
Real-world Scenarios
Scenario 1: During the annual audit of a cooperative housing society, the auditor identifies discrepancies in the maintenance fund accounts. The audit report is presented at the general body meeting, where members are informed about the discrepancies and the need for better financial management practices.
Scenario 2: In a cooperative credit society audit, financial irregularities are discovered in loan disbursement procedures. The audit report highlights these issues, and members discuss ways to improve internal controls to prevent such discrepancies in the future.
Scenario 3: A cooperative agricultural society's audit reveals discrepancies in the sale proceeds of agricultural produce. The audit report is shared with members, who collectively decide to conduct a detailed investigation into the matter and take necessary corrective actions.
References
Section 81 of the Gujarat Cooperative Societies Act, 1961: Official PDF
Rule 99 of the Gujarat Cooperative Societies Rules, 1965: Official PDF
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