What is the scope of an audit in the case of a cooperative housing society?
The scope of an audit in a co-operative society is far wider than the conventional audit of commercial entities. In the conventional audit an auditor is generally concerned with ascertaining whether accounts as a whole give a true and fair view of the profit or loss during a financial period and financial position as on the balance sheet date. In the audit of a co-operative housing society, apart from this conventional report, the auditor also has to ascertain and comment on the management of property and funds, propriety of certain transactions, and whether the society is working towards achievement of the objectives for which it is formed. In housing societies it is not unusual that the auditor is consulted on various aspects of law and management. An auditor in a co-operative field also acts as a guide and adviser to the society. This would require him to be reasonably thorough with various laws and rules concerning co-operative societies.
