CA Inter P5 · Chapter 9 · Question 9 of 12
In the audit of a co-operative credit society, the auditor finds loans given to members in excess of the limits in the society's bye-laws. This should be:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Reported in the audit report or audit memorandum as a non-compliance with the bye-laws
Explanation
A special feature of co-operative audit is the examination of compliance with the Co-operative Societies Act, rules and the society's bye-laws, including restrictions on loans to members. Non-compliance is reported in the audit report or memorandum. The auditor does not make entries in the books.
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