Auditor's Report

      Auditor’s  Report

The Auditor Report is to be submitted to the Society and a copy of the same to the Registrar and Federation of the Housing Societies concerned immediately on completion of the audit.  In addition to the statutory report which is the same as the one given in the case of the audit of limited companies the auditor of the Co-operative Housing Society has to append thereto a further detailed report which can be divided into the following parts:

(i)     In Form 1 and Form 28 ( Audit Memos )

(a)    The Form 1 requires information in respect of the name, address of the Society, period of audit, audit classification for the year and previous 3 years, no. of members and their classes, details regarding members and the registers of share capital, outside borrowings, meetings, Rectification Reports, audit fees, internal audit, staff members, breaches of Bye-laws, Rules and the Act, Income and Expenditure Account, Cash and Bank Balances, Securities, Assets and whether the draft audit memo was discussed at the managing committee meetings.

(b) Form 28 is applicable only to housing societies and requires information regarding borrowing, repayments, government assistance, membership, Land and Building, Members’ Contributions and their adequacy or otherwise, loans to members and whether the expenditure is approved of from time to time.

(ii) Auditor’s General Remarks and Suggestions Part I

Part I deals with the auditor’s general remarks and suggestions regarding the society’s working, objects and policies, progress of the society, borrowings and repayments, adherence to the terms of loans, impractical, illegal and/or harmful resolutions passed at the various meetings, comments on the Balance Sheet, and Income & Expenditure Account, Books of Account, staff members, cases of arbitration, Rectification Reports and classification of Society and reasons therefore.

(iii) Auditor’s General Remarks and Suggestions Part II

Part II deals with the mistakes, errors, inadequacies and omissions in the books of account and vouchers.

(iv)  Schedules required under Rule 69(6)

The four schedules deal with the infringement of the Bye-laws, the Rules and the Act, accounting omissions, improper and irregular payments, irregularities in the realization of money, doubtful and bad debts and other assets.