Group 16: Cooperative Society Audit

Correct answer C: Verify actual registration, governing law and legally relevant objects/status instead of deciding from sales geography alone.

Module jurisdiction guidance requires the governing Act/status, not a convenient commercial fact used as a legal conclusion.

Correct answer B: Until conclusion of the first annual general meeting.

First appointment mechanics and subsequent/current continuity directions must be distinguished; no permanent office follows.

Correct answer A: The Central Registrar.

Section 70(5) states the Central Registrar may appoint to fill this AGM nonappointment vacancy; not the same as resignation/death mechanism.

Correct answer D: Until conclusion of the next annual general meeting.

The casual-vacancy statutory term is next AGM; read actual current direction conditions too, rather than invent permanence.

Correct answer C: Another eligible approved-panel firm may be appointed on that ground without prior CRCS approval.

The July clause expressly permits eligibility/empanelment-failure replacement, distinct from other changes requiring prior approval.

Correct answer D: Use firms meeting RBI eligibility criteria for statutory auditors of Urban Cooperative Banks as updated from time to time.

The 1 July 2026 corrigendum replaces the stated panel criterion with RBI UCB eligibility; this is not a generic banking-income rule.

Correct answer A: It also applies forFY 2026-27 and remains in force until a revised panel is issued.

Read the order's express continuation; do not infer expiry from its subject line alone or deny later revisions can occur.

Correct answer D: An auditor convicted of an offence involving fraud within the last ten years is not eligible.

Currentorder 2(vi) adds the ten-year fraud conviction condition; eligibility includes more than CA qualification.

Correct answer D: MSCSs report appointment on the CRCS portal within one month of appointment.

Order 2(vii) is a society appointment-report duty distinct from section 70 auditor acceptance/intimation/report clocks.

Correct answer D: The supplied guarantee/security exceeds the Rs 1000 threshold and triggers the stated disqualification.

Section 72(2)(d) covers third partyguarantee/security above the stated amount; check additional current orderconditions as well.

Correct answer A: Whether secured loans/advances are properly secured and their terms are not prejudicial to society or members.

Security validity and terms matter; investigate evidence and implications rather than equate a valuation with a legal charge.

Correct answer A: The auditor may require information and explanations necessary for audit duties as well as record access.

Section 73(1) provides both relevant records access and necessary officer/employee information; preserve its audit purpose.

Correct answer A: Agreement of the balance-sheet and profit-and-loss with books of account and returns.

Account/return agreement is required reporting, not an assertion made true by signature.

Correct answer D: Forward required meeting notices/communications and preserve auditor attendance/hearing on audit-related business.

Section 76 adds communication/attendance/hearing rights; record access does not replace them.

Correct answer A: Rs 40000, with cash/loan posting reconciled to avoid double correction.

45000-5000=40000; the question expressly supplies genuine evidence, unlike an uncorroborated receipt lead.

Correct answer C: Evaluate supported recoverable amount and actual applicable policy, not age labels alone or imported bank rates.

Module overdue/valuation discussion calls for recovery assessment; supplied framework and jurisdiction are essential.

Correct answer C: Rs 2 lakh excess allowance to evaluate, not an additional Rs 2 lakh charge.

Required 4 minus recorded 6=-2. Consider supported correction under applicable framework, not automatic reversal without evidence.

Correct answer C: Rs 280000, subject to verifying the supplied interestfacts/framework.

350000-70000=280000. Explicit exercise rule is not a universal bank income claim.

Correct answer B: Funds other than net profits cannot be divided/distributed among members by dividend/bonus or otherwise under that provision.

Section 62 distinguishes profit distribution from society funds; verify actual liabilities and the relevant operative profit basis.

Correct answer D: That surplus is not treated as netprofit under the stated proviso and is dealt with according to bye-laws.

Section 62(2) proviso specifically addresses no-share capital societies; do not impose identical distribution treatment blindly.

Correct answer C: Rs 1 crore, since 1% is Rs 1.5 crore and the lesser amount is Rs 1 crore.

150 x.01=1.5 crore; compare with 1 crore. Eligibility history and contribution base are supplied, not inferred.

Correct answer B: Rs 10 lakh,Rs 0.4 lakh and Rs 4 lakh respectively.

40 x 25%=10; 40 x 1%=.4; 40 x 10%=4.63 Aand other conditions are separate, not an automatic dividend residual.

Correct answer B: Cap Rs 60000, so proposal exceeds it by Rs 30000.

1200000 x.05=60000; 90000-60000=30000. Purpose and amount conditions are separate.

Correct answer A: The actual audit accounts report submission to the society within the statutory six-month window.

Section 70(3 A) has a specifiedreport/recipient/trigger; a draft existence claim is not verified submission.

Correct answer B: Section 77(3) gives the special auditor the 73 powers/duties for that audit with the changed report recipient.

The provision links powers/duties to 73 but directs the report to Central Government; preserve both parts.

Correct answer C: Not less than 15 days for that specified route.

Section 78(1) proviso is route-specific; do not silently borrow the new 78(1 A)/(1 B)route to erase the gap.

Correct answer C: Communication of the inspection report copy to the society within three months from completion.

Section 79(3) differs from 78(4) inquiry report communication trigger; preserve the actual source distinction.

Correct answer B: Rs 28500, a Rs 1500 reduction from Rs 30000.

170 x 150+30 x 100=28500; 30 x 50=1500. Explicit framework not a universal statutory valuation rate.

Correct answer B: Assess and correct both supported issues, tracing purchase/stock recording to avoid double counting.

Module valuation/liability completeness principles require distinct supported correction; avoid treating one posting as universal cure.

Correct answer D: The fallback applies until such standards are specified; check actual current determinations for the society/class.

Section 73(6) prioritises determined standards, uses interimICAI fallback and separately addresses RBI bank standards; no blanket absence/current override claim.