CA Inter P5 · Chapter 9 · Question 8 of 12
A distinctive feature of the audit of co-operative societies under many State Co-operative Societies Acts is that the auditor:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Classifies the society into an audit class based on its working and performance
Explanation
Co-operative audit is governed by the relevant State Co-operative Societies Act and rules (or the Multi-State Co-operative Societies Act, 2002 for multi-State societies). A typical special requirement is the award of an audit classification (for example, classes such as A, B, C and D, with the classes and criteria varying from State to State) based on criteria such as financial position, management and recovery performance. The CAG does not appoint co-operative auditors, SA 701 is aimed at listed entities, and reporting on internal financial controls alone is not the function of a co-operative audit.
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