Co-operative Societies Act 1979 · 2020 Revised Edition · Part 3 · Privileges and Duties of Societies
35. Duties of auditor
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The auditor must inspect and audit the accounts and other relevant records of the society and must immediately draw the attention of the Registrar and the society to any irregularity disclosed by the inspection and audit that is, in the auditor’s opinion, of sufficient importance to justify the auditor so doing.
auditor
“auditor”, in relation to a society, means any person referred to in section 33(1) or 36(4)(b);
The financial statements submitted by the society after the close of the financial year must be audited and reported on by the auditor.
society
“society” means a co-operative society registered under this Act and includes a primary society, a secondary society and an apex organisation;
The auditor must report —
whether the financial statements give a true and fair view of the financial position and performance of the society; and
such other matters arising from the audit as the auditor considers should be reported.
The auditor must state in the auditor’s report whether —
proper accounting and other records have been kept; and
the receipt, expenditure and investment of moneys and the acquisition and disposal of assets by the society during the year have been in accordance with the by-laws and the provisions of this Act and the Rules.
The auditor may at any other time report to the Registrar and the society upon any matters arising out of the performance of the audit.
Registrar
“Registrar” means the Registrar of Co‑operative Societies appointed under section 3(1), and includes a Deputy Registrar, an Assistant Registrar, or a public officer appointed under section 3(1), exercising such function, duty or power of the Registrar as is delegated to the Deputy Registrar, Assistant Registrar or public officer (as the case may be) under section 3(2);
The audit of the accounts of a society must include an examination of and report on overdue debts (if any) and an examination of and report on the valuation of the assets and liabilities of the society.
The Registrar may impose additional duties on an auditor, including but not limited to the following:
a duty to submit to the Registrar such additional information in relation to the auditor’s audit as the Registrar considers necessary;
a duty to enlarge or extend the scope of the auditor’s audit of the transactions and affairs of the society;
a duty to carry out any other examination or establish any procedure in any particular case;
a duty to submit a report to the Registrar on any of the matters referred to in paragraphs (b) and (c),and the auditor must carry out such duty or duties.
The society must remunerate the auditor in respect of the discharge of such duty or duties as the Registrar may impose on the auditor under subsection (7), subject to the Registrar’s written directions.
If an auditor of a society, in the course of the performance of his or her duties as auditor, has reason to believe that an offence involving fraud or dishonesty is being or has been committed against the society by any officer or employee of the society and —
officer
“officer” includes a chairperson, vice‑chairperson, director, secretary, assistant secretary, treasurer, assistant treasurer, member of committee of management, employee, internal auditor, liquidator or other person empowered under this Act, the Rules or the by-laws, to give directives in regard to the business of a society or to supervise the business;
the offence is punishable by imprisonment for a term that is not less than 2 years; and
the value of the property obtained or likely to be obtained from the commission of the offence is not less than $20,000,the auditor must immediately report the matter to the Registrar.
An officer of a society who refuses or fails, without lawful excuse, to allow an auditor of the society access, in accordance with this section, to any accounting and other records, including registers, of the society in the officer’s custody or control, or to give any information or explanation as and when required under this section, or otherwise hinders, obstructs or delays an auditor in the performance of the auditor’s duties or the exercise of the auditor’s powers, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $4,000.