Co-Operative Society Audit

There are certain features of co-operative which are similar to those of companies. As in the case of companies, in co operative societies also, there is a separation of ownership from management while the capital of a cooperative society is contributed by all the members. The management of its affairs is in the hands of only some of the members’ elected for this purpose. This necessitates an independent financial audit of accounts of cooperative societies. Considering this, audit of cooperative societies is required by law in India. However, an important feature of co operative societies is that, unlike most companies, the affairs of co-operative societies are often managed by persons who do not possess adequate managerial, technical or accounting skills. The independent financial auditors of co-operative societies are, therefore, required to report on some of these aspects also.