Short Answer

If a society's accounts are found irregular during an audit, certain actions can be taken as per the Gujarat Cooperative Societies Act, 1961 and Rules.

Detailed Explanation

Section 75 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to order a special audit if irregularities are found during the regular audit. This section allows the Registrar to appoint a special auditor to investigate the irregularities and report back. In practice, this means that if the society's accounts are found to be irregular, the Registrar can intervene by ordering a special audit to ensure transparency and accuracy in financial reporting.

Furthermore, Rule 67 of the Gujarat Cooperative Societies Rules, 1965 outlines the procedure for conducting a special audit. This rule specifies the steps to be followed by the special auditor, including examining the financial records, interviewing relevant personnel, and submitting a detailed report to the Registrar. In real-world scenarios, this rule ensures that a thorough investigation is conducted to identify the root cause of the irregularities and recommend corrective actions.

For example, if during a routine audit, discrepancies are discovered in the society's financial statements indicating possible mismanagement or fraud, the Registrar can invoke Section 75 and order a special audit. The appointed special auditor will then meticulously review the accounts, interview key personnel, and submit a comprehensive report detailing the findings and recommendations for rectification.

In another scenario, if the audit reveals instances of embezzlement or unauthorized transactions within the society, the special audit process outlined in Rule 67 will help uncover the extent of the irregularities and hold responsible parties accountable. The Registrar can then take necessary actions based on the special audit report to rectify the financial discrepancies and ensure compliance with the law.

Reference

• Section 75 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Rule 67 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]