Chartered Accountant and Vice President of the Maharashtra Economic Development Council, Abhijit Kelkar, has described the proposed Multi-State Cooperative Societies (Auditor’s Report) Order (MSCARO) as a landmark initiative that could significantly transform audit reporting and governance standards in India’s cooperative sector.
In a note shared on Thursday, Kelkar said the draft framework introduced by the Ministry of Cooperation seeks to strengthen transparency, accountability and financial discipline in Multi-State Cooperative Societies (MSCSs), while aligning cooperative audit practices more closely with the CARO 2020 framework applicable to companies.
According to him, the proposed order places greater emphasis on governance, statutory compliance, internal controls, risk management, financial reporting and transparency in member-related transactions.
Auditors may be required to provide more detailed observations on asset protection, fraud indicators, lending practices and operational risks.
Kelkar noted that while MSCARO would expand auditors’ reporting responsibilities, it would also encourage MSCSs to strengthen compliance systems, record-keeping and governance frameworks.
He urged auditors, cooperative leaders and industry experts to actively participate in the consultation process, emphasizing that stakeholder feedback would be crucial in shaping the final framework and its long-term impact on the cooperative sector.