Constitution Section 243ZM — Audit of accounts of co-operative societies

Part IXB — THE CO-OPERATIVE SOCIETIES

Constitutional

Summary

A state legislature can pass a law about how co-operative societies must keep their accounts and have them audited at least once every financial year. That law must also set the minimum qualifications and experience needed for auditors or auditing firms to be allowed to audit these societies. Every co-operative society must get its accounts audited by an auditor or firm chosen by its general body from a list approved by the state government or an authorised authority. The audit must be completed within six months after the end of the financial year, and the audit report for an apex co-operative society must be presented to the state legislature as required by state law.

Official Text

(1) The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the co-operative societies and the auditing of such accounts at least once in each financial year.

(2) The Legislature of a State shall, by law, lay down the minimum qualifications and experience of auditors and auditing firms that shall be eligible for auditing accounts of the co-operative societies.

(3) Every co-operative society shall cause to be audited by an auditor or auditing firms referred to in clause (2) appointed by the general body of the co-operative society:

Provided that such auditors or auditing firms shall be appointed from a panel approved by a State Government or an authority authorised by the State Government in this behalf.

(4) The accounts of every co-operative society shall be audited within six months of the close of the financial year to which such accounts relate.

(5) The audit report of the accounts of an apex co-operative society, as may be defined by the State Act, shall be laid before the State Legislature in the manner, as may be provided by the State Legislature, by law.