Ch 5Accounts and Audit of Co-operative Societies — Class 12 Co-operation, concept-first.

A co-operative society handles other people's money. Its funds come from the share money, entrance fees, deposits and hard-earned savings of ordinary members, and every rupee it spends or lends must u…

The Maharashtra Co-operative Societies Act, 1960 (Section 65 read with the Rules) requires every society to keep proper books of account and records, correct and up to date, so that its true financial…

For a co-operative society, audit is not a matter of choice. Section 81 of the Maharashtra Co-operative Societies Act, 1960 makes the audit of a society's accounts compulsory at least once in every co…

A special and important feature of co-operative audit is that, after examining the accounts, the auditor does not merely certify the figures — the auditor also awards the society an audit class (or gr…

The audit does not end when the auditor finishes checking the books. Its findings must be put in writing and, more importantly, the faults it uncovers must be put right.

When a co-operative society earns a surplus, it cannot hand out the whole of it as it pleases. Because a co-operative works for service and stability rather than for maximum profit, the Act, the Rules…