Matters to be included in the Audit By CA & G.D.C.A
Inclusion of follow matters under Section 81 (2) of the Maharashtra Co- operative Societies Act, 1960 is obligatory in the report of the Audit.
Cash balance and investment and society’s liability and valuation of property.
If the decision like unreasonable penalty, unjustifiable charging and charging excess charges in respect of transference fee/ non occupancy charges then the directions in that regard are taken and implemented on the level of society, then it is obligatory to give remarks and instructions for action to be taken should be made in the audit report otherwise the main purpose of rectification of faults in the societies working would not be served
While doing the objective evolution of the financial transactions of the society, it is necessary to check the matters like whether renewal of the funds was made or not prescribed procedures for incurring expenditure on major repairing work was followed or not and accordingly mentioned clear remarks and instructions should be mentioned in the audit report.
In addition, it is obligatory for the benefit of the society to inspect following matters which are generally neglected by the auditor in respect of Housing Societies and include the remarks thereof in the audit report
Whether the personal expense is put under the head of profit and loss account?
Whether the society has made expenses in fulfilling the purpose or not?
Whether the interest of the society is hurt by making transaction with book entry.
Whether the Society is fulfilling liability toward a member or not?
Whether legal proceedings was initiated in time against the default members?
Whether Conveyance Deed is in favour of society or not?
Whether all transfers of share is as per bye-laws or Not ?
Whether membership of the Housing Federation [Dist. OR Taluka level] is taken or not? And payment of an annual fee of the said federation is made or not?
Whether the bonds executed under section 73 (1) (AB) are proper in view of statutory or not i.e. M-20 BONDS are executed ? M-20 bond execution is exempted for housing society whose election result declared after 06Th September 2012 as per order issued by the Secretary of Co-operation
Whether the payment of Education Cess was made to”MAHARASHTRA RAJYA SAHAKARI SANGH LTD “ not?
Whether reconciliation and financial statements up to the last date of inspection was inspected or not?
Whether the profit & loss statement in the financial year are inspected or not? And whether the remarks and instructions in that respect are included or not?
Whether all records necessary for auditor was available for audit and was it sufficient as per his knowledge and belief for auditing?
Whether the society has kept necessary books as per law, rules and bye- laws? And whether the re-conciliation and profit and loss statement match with the ledger books of the society.
If the answer is negative in this matter, then that deficiency should be noted in the audit report with reason as per rule 69(5).
In addition to this if the matters which are to be taken seriously in the audit report in conformity with the following points then it is necessary to note that separately in the remarks of the auditor.
1. Transactions took place in violation of law, rules, bye-laws.
2. The details of those amounts which was to be taken into account but not taken.
3. Improper and irregular expenditure.
4. Dubious and bad amounts.
5. Matters prescribed by the Registrar.
Auditor shall check the following Register /Records /Document of Society
1. " I " Register
2. " J " Register
3. Sinking Fund Register
4. Share Registe
5. Nomination Register
6. Investment Register
7. Mortgage Register
8. Property Register
9.Monthly Register
10. Cash Book Register
11. General Register
Auditor shall check the all page of above register. Tick with Green Pen and on the Last Entry of each register Auditor Sign along with check on date must written.
Auditor shall also check all Transfer of Share Certificate Document
Auditor shall also check each and every Minutes of Monthly Working Committee Meeting , AGM & SAGM with Green Pen and Audior Sign along with Check date at the end of every Minutes of Meeting must written on the MCM & AGM Minutes Book
