6.3 Formation of Audit Report:
- As per the instructions in the circular of the office of the Commissioner, Co-operation, dt. 12/03/1974, features of the audit report shall be as follows :-
- Audit Report should be clear, instructions should not be vague similarly it should not be brief also.
- Personal remark should not be mentioned in the report.
- Formation should be made to the point, part wise and subject wise and obliged to the provisions in law.
- Financial Statements should be in ‘N’ format provided in the Co-operation Rules.
Formation of the Audit Report should be in three parts as shown below :
Part A – Following matters may be included in this part.
- Financial embezzlement .
- Misappropriation.
- Improper appropriation of fund.
- Effects of the transactions to be caused on society due to policy decision.
- Improper and Irregular loan transaction.
- Improper Investments.
Part – B – Following points should be elucidated in this part.
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Management Part - Following matters should be taken into considerationwhile giving paragraph wise instructions and remarks in this par.
1. Introduction :
In this, there should be information about period of the audit, details of the audit officer, type of the audit, explanations and information etc.
2. Membership :
Details of the fulfillment of terms of membership, method, fulfillment of necessary legal procedure, transfer procedure and registers thereof.
3. Employee Management :
Details of the requirement of employees, its backlog, expenses to be incurred on them.
4. Minutes of the Meeting :
In this, there should be details of the proceeding of management committee meeting, annual general body meeting, decision taken in it and its implementation, its legality and financial effects to be caused because ofthis.
5. Inspection by the Financial Agencies :
If financial agencies had undertaken inspection, then elucidation regarding whether fulfillment of the deficiencies were made or not.
6. Statutory Audit Fault Rectification Report :
If the society had not rectified the important faults mentioned in the last year’s statutory audit report, then it should be included.
7. Compliance of Statutory Controls :
Those legal provisions which society has not complied that should be mentioned.
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Finance Management Part :
- Appropriation of fund and availability.
- Valuation of reconciliation matters and inspection.
- True and exact position of profit and loss and reconciliation.
- Budget Statement.
- Analysis of loss and profit and reconciliation.
- Cash in hands and subtle.
- Provisions.
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Loan Transactions :
- Policy.
- Distribution of loan.
- Dues.
- Recovery.
- Unproductive and dubious debt fund.
Part C - General Instructions and Remarks.
In this, the matters like vehicles, expenditure vouchers, constructions, furniture and other purchasing, travel expenses, stationery and other financial matters may be included. Similarly classification of auditing and other miscellaneous paragraphs may also be included.
It is the responsibility of the auditor to give special report, if serious nature financial misappropriation committed in society.