In a written reply to a question in the Lok Sabha, Union Minister of Cooperation, Amit Shah listed steps towards strengthening the audit process of Multi-State Co-ops. Shah said the Multi-State Cooperative Societies (MSCS) (Amendment) Act & Rules, 2023 aims to supplement the existing legislation by incorporating the provisions of Ninety-seventh Constitutional Amendment.
He said further following provisions have specifically been introduced for strengthening the audit process of Multi-State Cooperative Societies:
A provision for Concurrent Audit has been introduced for Multi-State Cooperative Societies with turnover/deposits of more than 500 crore rupees from a panel of auditors approved by the Central Registrar. Concurrent audit will ensure early detection of fraud or irregularities, if any, and accordingly prompt course corrections can be made.
Following two panels of auditors for Multi-State Cooperative Societies have been notified for financial year 2023-24:
Panel of auditors for multi-State cooperative societies having an annual turnover/deposit (as the case may be) of up to five hundred crore rupees for carrying out Statutory Audit.
Panel of auditors for multi-State cooperative societies having an annual turnover/deposit (as the case may be) of more than five hundred crore rupees for carrying out Statutory and Concurrent Audit.
A provision has also been introduced for determination by the Central Government of accounting and auditing standards for multi-State cooperative societies.