Short Answer

A Chartered Accountant is qualified to audit the society's accounts.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 states that the audit of a cooperative society's accounts must be conducted by a person who is a Chartered Accountant. This means that only a Chartered Accountant is qualified to audit the society's accounts as per the Act. In practice, this requirement ensures that the audit is carried out by a professional with the necessary expertise and qualifications to accurately assess the financial health and compliance of the society.

In real-world scenarios, when a cooperative society needs to conduct an audit of its accounts, it must engage the services of a Chartered Accountant to fulfill the legal requirement under the Act. The Chartered Accountant will review the financial records, transactions, and statements of the society to ensure accuracy, compliance with laws, and proper financial management. This process helps in maintaining transparency, accountability, and trust among the society members.

The step-by-step process involves the society appointing a Chartered Accountant to conduct the audit, providing access to all relevant financial records and documents, and receiving the audit report upon completion. The Chartered Accountant will then submit the audit report to the society, highlighting any discrepancies, errors, or areas of improvement.

Practical Examples

• XYZ Cooperative Housing Society engages a Chartered Accountant annually to audit its accounts as mandated by Section 81 of the Gujarat Cooperative Societies Act, 1961. The Chartered Accountant reviews the financial transactions, prepares the audit report, and presents it to the society members during the Annual General Meeting.

• ABC Credit Cooperative Society appoints a Chartered Accountant to conduct a special audit following allegations of financial mismanagement. The Chartered Accountant investigates the claims, reviews the records, and submits a detailed report to the society's management committee.

• LMN Agricultural Cooperative Society faces a government inquiry regarding its financial practices. As part of the investigation, a Chartered Accountant is appointed to audit the society's accounts to ensure compliance with the Act and regulations.

References

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