CAs, societies welfare body opposes Govt circular on auditing

Maharashtra Government's decision mandating 100 per cent audit compliance by cooperative housing societies has evoked sharp reaction among chartered accountants (CAs) and societies welfare association.
Over a year ago, the Commissioner of Cooperation and Registrar of Co-operative Societies issued a circular making it compulsory for cooperative societies to get their accounts audited and file returns online.
Addressing mediapersons at the Press Club, Chairman of Maharashtra Societies Welfare Association (MSWA) Ramesh Prabhu said with this move, the Government has burdened CAs.
"In process to implement the e-governance system in the cooperative field, the Maharashtra Government has fixed all responsibilities on auditors. They have been burdened not only with the task of auditing accounts of societies, but also commenting on their working."

The Registrar of Co-operative Societies, without communicating with societies, appointed auditors on their behalf, he said.
This was due to a communication gap as cooperative societies have already appointed their own empanelled auditors, said Prabhu, who himself is a CA.

Prabhu said they are in touch with senior officers of cooperative societies along with the Cooperative Committee of Institute of Chartered Accountants of India (ICAI) and have taken up the issue with the State Government.
Shilpa Shingare, Chairperson of Cooperative Committee of ICAI's Western India Regional Council (WIRC), said the Government should immediately resolve the issue.
"The disturbing factor is that officers of Cooperative Department are threating auditors they would face de-panelment if audit reports are not submitted by August 31. This is completely unjustifiable."

ICAI said they may take legal recourse.
Prabhu said almost of 95 per cent of housing societies are not complying with the provisions of the circular, which are suppose to file their annual returns online.
MSWA is a registered charitable organisation which offers services like guidance on registration formalities of society, land & building in favour of society, stamp duty and registration of agreements and how to respond to notices received from Government authorities, among others.