Short Answer

The annual audit of a cooperative society should cover a financial year.

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. This annual statement of accounts includes the income and expenditure account, the balance sheet, and any other statements as required by the rules. The audit of these accounts is conducted annually by the auditor appointed by the Registrar under Section 81(2) of the Act.

Furthermore, Rule 84 of the Gujarat Cooperative Societies Rules, 1965 specifies that the audit of the accounts of a cooperative society shall cover the financial year of the society. This means that the auditor will review and verify the financial transactions, records, and statements of the cooperative society for the entire financial year to ensure accuracy and compliance with the provisions of the Act and Rules.

In practice, the annual audit process typically involves the auditor examining the financial records, transactions, receipts, payments, and other relevant documents of the cooperative society for the specific financial year. The auditor will assess the financial health of the society, identify any discrepancies or irregularities, and provide an audit report highlighting their findings and recommendations.

For example, if a cooperative society operates from April 1, 2021, to March 31, 2022, the annual audit for that society should cover the financial transactions and activities during this period. The auditor will review all financial records and statements related to this specific financial year to ensure compliance with the Act and Rules.

In summary, as per the Gujarat Cooperative Societies Act, 1961 and Rules, the annual audit of a cooperative society should cover a financial year to ensure proper scrutiny of financial transactions and compliance with regulatory requirements.

References

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

• Rule 84 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]