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Co Operative Audit

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27 views4 pages

Co Operative Audit

Uploaded by

Sameer Mohamed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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AUDIT

A cooperative societies is a democratic institution.It is being managed by elected


representatives of members.Audit helps the members to ascertain whether their elected
representatives have effectively managed the affairs of the society for the common nterest of
all.It helps to find out errors and fraud.
Audit
Audit means a systematic examination of books to verify the authenticity and accuracy of
transaction.
Advantages of Audit
• It helps in detecting errors and frauds.
• It helps in preventing errors and frauds
• It ensures accuracy of the account
• It made records are up to date
• It ensures authenticity and reliability of financial statement.

Different type of audit (Audit Classification)


Concurrent audit
It is an audit where the auditor visit the institution daily or regularly or periodically and
complete the examination of accounts up to date. It is also called continuous audit.
Interim audit
It is an audit performed between two final audits. It helps the auditor to get the final audit
done easier and quicker.
Final audit
It is a statutory annual audit. It is conducted at the end of the financial year.
Test audit
It is a special type of audit in the cooperative field. The deputy registrar or assistant registrar
are expected to test audit of a few societies to ascertain whether the auditor has done the
audit correctly or not.

Co-operative audit
Cooperative audit deals with sec (63) of the cooperative society. It includes examination of
the overdue debts, if any, verification of cash balances and securities of the society and any
other matters prescribed.

Director of cooperative audit


He is appointed under sub-section (1) of section 63 and any officer to whom all or any of the
powers of the director of cooperative audit maybe delegated by the govt by general or
special order.
Audit programme
It is a written and predetermined plan of action for conducting an audit.
Types of audit programme
1. Fixed audit programme
It is a pre-planned and detailed programme of audit. It is also called fixed or pre-determined
audit programme.
2. Flexible audit programme
An audit programme that can be changed as per the need, time, nature of business and
auditing standard is called flexible audit programme.
Vouching
It means a careful examination of the original documentary evidence such as invoice,
receipts, minutes, contracts etc.
Objectives of Vouching
1. The transaction pertained to the business only.
2. It pertained to the year under audit.
3. The transactions are properly authorized.
4. Detection and prevention of fraud and error.
Vouchers
Vouchers is documentary evidence, in support of in the books of accounts.
Types of vouchers
1. Primary vouchers
Primary vouchers are original vouchers. They are written or printed, or typed evidence in
original.
Example: Cash memos, Invoices, Pay in slip
2. Secondary vouchers
When original voucher is not available copy of the original evidences are produced in
support or subsidiary evidence such vouchers are called secondary or collateral vouchers.
Example: Bank reconciliation statement, copy of sales memo.
Essentials of valid voucher
The authority of the voucher The authenticity of a voucher
The genuineness of the voucher
The accuracy of the voucher
The correctness of the voucher
While examine the vouchers following points must be paid special attention
1. All the vouchers are consecutively numbered and arrange serially.
2. He should examine the date of the vouchers.
3. He should see that information in the voucher is fully self-explanatory.
4. He should see that voucher is related to business in the name of the firm.
5. He should see that each voucher is original in face.
6. He should accept voucher in printed form.
7. He should not accept voucher in over writing or erasure.
8. He should complete vouching work in a one siting.
9. He should not take help of client staff for vouching.
10. He should see that every voucher is passed in the order by responsible officer.

Audit Notebook (Audit memorandum)


It is the book kept by the audit clerk. It is a register or diary maintained by the audit clerk
during the course of audit.
Audit certificate
An audit certificate is a certificate of truth of the statement that the auditor makes.
Audit Procedure
• The audit under section 63 shall in all cases extend back to the last date of previous audit
and shall be carried out up to the last date of the year immediately preceding the audit. It can
also be as per the direction of Director of co-operative Audit.
• The auditor shall submit the memorandum.
• It should be in the form prescribed by Director of cooperative audit on the accounts
examined by him
• The auditor shall state whether in his opinion and to best of his information, the said
accounts give all the information required by the Act and give a true and fair view.

Memorandum shall state:


• If the auditor had obtained all the information and explanation he required for audit
• If the proper books of accounts as per act and rules, have been kept and maintained by the
society.
• If the balance sheet and final accounts are in agreement with the books of accounts and
returns of the society.
• Schedule with full particulars of all transactions which appear contrary to Act provisions.
• The sums that have not been brought into account, by the society.
• Any material irregularity in the expenditure.
• Any money or property which appears to the auditor as bad or
doubtful debt.
• Audit classification statement.
• Any other matters specified by the registrar.

Additional note
Voucher is a written evidence in original, it is called a primary voucher.
When original voucher is missing duplicate voucher is produced, called Collateral Voucher

DCA (Director of Co-operative Audi-


Sec 63
Appointed by- Government (Sec 63(1))
Jurisdiction - Whole of the State
Sec 63(2) - Qualification and terms and conditions
DCA shall be an officer on deputation from the Indian Audit and Account Services (IAAS)not
below the rank of deputy accountant general or an officer from Indian
Administrative services

An auditor shall audit not more than 30 societies in a financial year except societies having
paid up share capital of less than 1 lakh/ working capital of 1lakh

If general body fails to appoint an anuditor DCA will appoint an auditor from the panel
DCA shall publish panel of auditors on designation basis within 60 days from the close of the
year
Internal auditor of a Co-operative society is appointed by Managing committee

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