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A smarter way to audit your housing society’s finances

With the financial year coming to a close, housing societies must turn their focus to auditing their accounts. Ensuring compliance with audit regulations is crucial for maintaining financial transparency and avoiding penalties. A well-structured account audit of housing society helps identify discrepancies, streamline financial records, and build trust among residents.

Statutory audit as per society bye-laws

As per Cooperative Housing Society by-laws, financial audits must be conducted annually to ensure proper fund management. Here’s what societies need to follow:

1. Appointment of auditors

  • Societies can appoint an Internal Auditor if required.
  • A Statutory Auditor must be appointed at the Annual General Body Meeting (AGM) from a state-approved panel.
  • The same Statutory Auditor cannot serve for more than two consecutive years.
  • The audit report must be submitted as per Section 81 of the Cooperative Societies Act.

2. Timelines & responsibilities

  • The Management Committee is responsible for ensuring that the account audit of the housing society is completed within four months after the financial year ends.
  • The Secretary must provide all necessary records, books, and registers to the auditors.
  • The committee should ensure timely submission of audit reports to prevent legal issues and penalties.

3. Audit rectification & compliance

  • Upon receiving the audit report, the Secretary must prepare an audit rectification report addressing any objections or recommendations.
  • This report must be presented at the next committee meeting for approval.
  • Societies must complete audit rectifications within three months and submit the report to the Registrar and the AGM.
  • If the committee fails to do so, members may be penalized under Sections 146 and 147 of the Cooperative Societies Act.
  • Regular audits help detect fraudulent transactions, ensuring greater financial security.

How an accounting system simplifies audits

Managing society finances manually can be overwhelming. A robust society accounting software like Mygate ensures:

  • Automated bookkeeping for error-free records
  • Seamless audit reports with auto-generated financial statements
  • Real-time expense tracking to prevent discrepancies
  • Timely tax and compliance reminders
  • Secure digital records that can be accessed anytime for audits

Why Regular audits matter

  • Helps identify financial mismanagement before it escalates
  • Ensures transparent fund allocation for maintenance and development
  • Strengthens the credibility of the RWA among residents
  • Prevents legal disputes related to financial irregularities

A well-maintained account audit of a housing society enhances financial discipline and strengthens the trust between residents and the management committee. Ensure your society follows a structured approach to audits and stays compliant with regulations.

For societies looking for a hassle-free audit process, Mygate’s ERP solution offers seamless financial management, ensuring compliance and accuracy. Stay ahead with automated accounting and transparent financial reporting today.

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