Section 73: Audit

73. Audit (1) Subject to subsection (2), every society shall, at its first general meeting and at every subsequent annual general meeting, appoint the Principal Co-operative Auditor or an auditor through an ordinary resolution of its members to— (a) hold office from the conclusion of the meeting until the conclusion of the next annual general meeting; and (b) audit the financial statements of the society for the accounting period next after the meeting. (2) (a) No society shall, where its annual revenue exceeds the prescribed amount, appoint the Principal Co-operative Auditor as auditor. (b) Where a society appoints the Principal Co-operative Auditor as auditor, he shall not be remunerated by the society. (3) Every society shall, within a period of 3 months after the closing of the financial year, submit to the Principal Co-operative Auditor or auditor, as the case may be, the financial statements together with all relevant documents and such statistical returns as the Principal Co-operative Auditor or auditor may require. [Issue 9] C49 – 38 Revised Laws of Mauritius (4) The Principal Co-operative Auditor or auditor shall, within 3 months from receipt of the financial statements together with all relevant documents, submit a report on the audit carried out to the President of the society and the Registrar. (5) The Principal Co-operative Auditor or auditor may, for the purpose of the examination or audit, require from any member of the Board, officer, the internal controller, employee or member, such information and explanations as may be necessary. (6) The Principal Co-operative Auditor or auditor shall, while auditing the accounts of a society, assess— (a) the financial situation of the society and the functioning of its decision making bodies; and (b) the degree to which procedures set out in the rules or in any other relevant documents of the society are being complied with. (7) Where the Principal Co-operative Auditor or auditor finds any shortcoming in the books or procedures of the society, he shall recommend such remedial actions and measures as he may determine. (8) The Principal Co-operative Auditor or auditor shall, within 15 days of the completion of the audit, submit a copy of his findings together with the audit report and the audited accounts of the society to the Board and to the Registrar. (9) The findings of the Principal Co-operative Auditor or auditor submitted under subsection (8) shall include— (a) a list of transactions and agreements, if any, between the society and its members or third parties not covered by the rules or not duly authorised or likely to cause damage to the society; and (b) an appraisal of the management performance and the working of the decision-making bodies of the society. (10) Where the Board decides not to implement any recommendation contained in the findings of the Principal Co-operative Auditor or auditor, it shall so inform the Registrar in writing and give reasons for the nonimplementation. (11) The audit report referred to in subsection (8) shall include a statement as to whether— (a) the auditor had access to all accounts, books, records and relevant information required while carrying out the audit; (b) in the opinion of the auditor, accounting records have been kept, and internal control systems have been maintained properly and have been audited in accordance with this Act and other relevant enactments; and C49 – 39 [Issue 9] Co-Operatives Act (c) the accounts prepared by the socie The audit report referred to in subsection (8) shall include a statement as to whether— (a) the auditor had access to all accounts, books, records and relevant information required while carrying out the audit; (b) in the opinion of the auditor, accounting records have been kept, and internal control systems have been maintained properly and have been audited in accordance with this Act and other relevant enactments; and C49 – 39 [Issue 9] Co-Operatives Act (c) the accounts prepared by the society give a true and fair view of the affairs of the society. (12) The audit report shall be submitted for consideration at the annual general meeting.