Under Section 81 of the Maharashtra Co-operative Societies Act 1960 and corresponding State Co-operative Acts across India, every Housing Society and Resident Welfare Association must appoint a Panel Certified Auditor to audit its books of accounts before statutory deadlines. IncorpBiz’s empanelled CA wing performs rigorous scrutiny of Receipts & Payments, Income & Expenditure, Sinking and Major Repair Reserve funds, Member maintenance arrears, interest calculations, bank reconciliations, Form N-1/N-2 audit memos, award of official Audit Classification Grade (Class A/B), and submission of Form 'O' Rectification Reports to the Deputy Registrar of Co-operative Societies.
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Standalone buildings, small CHS with up to 50 members
Gated communities, twin towers & medium housing complexes
Large townships, high-rise complexes & societies going for Redevelopment / Deemed Conveyance
Verification of AGM Auditor appointment letter and collection of ledger books, bank statements & invoices.
Duration: Day 1 - 3Auditing maintenance receipts, Sinking/Repair fund investments, TDS deduction, GST calculation, and cash balances.
Duration: Day 4 - 6Preparing preliminary audit queries, verifying member arrears, and drafting Audit Memo Form N-1/N-2.
Duration: Day 7 - 8Issuance of final certified Audit Report, Grade Classification, and assisting committee with Form O submission.
Duration: Day 9 - 10Under the Maharashtra Co-operative Societies Act and most State laws, the statutory audit must be completed within 4 months of the financial year close, i.e., on or before 31st July (or extended up to 30th September by government notifications). The AGM must be conducted on or before 30th September.
Form 'O' is the Audit Rectification Report. Under Section 82 of the MCS Act, the Managing Committee must submit a report to the Deputy Registrar explaining the corrective actions taken on the shortcomings and qualifications pointed out in the Auditor’s Memo within 3 months of receiving the audit report.
Audit grades reflect the financial health and administrative compliance of the society. Grade A represents excellent book-keeping, timely recovery of dues (<10% arrears), and proper fund investments. Grade B is fair compliance. Grade C and D represent poor recovery, high arrears, or serious accounting discrepancies requiring immediate corrective action.
No! Statutory audit can only be performed by a Practicing Chartered Accountant or Certified Auditor who is empanelled on the official Auditor Panel published by the State Co-operative Department.
If a society fails to appoint an auditor or complete the audit, the Registrar of Co-operative Societies has the authority to appoint an auditor suo motu, initiate an inquiry under Section 83, levy financial penalties on committee members, and in severe cases, dissolve or supersede the Managing Committee.
