Co-ops have to get audited every year

Pursuant to the new rules, all cooperative societies in Kerala shall have to get their accounts examined at least once in a year by auditors selected by the general body from a panel prepared by the director of cooperative audit (DCA).

Experts say the current shortage of qualified auditors needs to be remedied so as to enable the DCA to offer good panels. That apart, there is a need to check any scope for indulging in favoritism in selection of auditors at any level, experts suggest.

Sources keeping close tabs on the Kerala’s cooperative sector point out yet another weakness in the new rules that allows hiring of retired auditors in the event of no auditor left in the DCA’s panel.

Unless such loopholes are closed, the quality of audit would take a hammering, said sources.