a“ TORS FOR CONDUCTING OF AUDIT OF COOPERATIVE INSTITUTIONS FOR THE YEAR ENDED 30.06.2019. AA) Acceptance of allocation by auditors should be confirmed within a week positively. In case of failure, allocation shall be cancelled. 2) You will also please confirm that your firm is not an internal auditor or rendering services in preparation of accounts of the institution allocated to you. JA) Audit of the institution assigned to you should be completed/ submitted within 60 days from the date of allocation positively to this office. If the audit reports are not submitted in time, the assignment shall be cancelled and re-assigned to any other firm. 4) Scales of audit fee issued vide No. RCS/ Audit/ 2967-3000, dated 15.07.2016 will be applicable in respect of above allocations. You will not take any audit fee in advance from the institution audited. Audit fee bill shall not be allowed to charge ‘on phase-wise. Moreover, TA / DA will also not be claimed. In case TA / DA, boarding and lodging charges are claimed, your firm will be blacklisted. f previous audit of the institution has not been conducted or not allocated to any one, a report along with certificate of the institution may be sent to this office for taking necessary action and endorse copy to the concerned DRCS / CRCS, for information. 6) Please inform the institution concerned under intimation to this office of the probable date on which you intend to commence the auclit so that the Managing Committee may keep ready books, record and final accounts / statements. / 2) Incase of non-receipt of Trial Balance, Balance Sheet and Profit & Loss accounts within two weeks of receipt of allocation order, a reference may be made to the Concerned Deputy / Circle Registrar, Cooperative Societies for supplying the requisite information and a copy should be endorsed to this office 8) As required under Section 22(2) of Cooperative Societies ‘Act, 1925 the Auditor shall examine the overdue debis, if any, verify the cash balance and securities and Saluate the assets and liabilities of the society in a transparent and justified manner nd shall give his opinion / recommenciation in case of any misuse of funds & assets and un-necessary burden of liabilities of the society and fix the liability on delinquents. 9) During the audit, the Auditor will check al the purchases made by the society and valuate the vouchers of these purchases in accordance with market rates in the Tnatter. Further he will also check weather proper codal procedure has been adopted in these purchases by the society or otherwise 10) The Auditor will also check the stock and stores of the society and in case of any deficiency, shall give his clear cut recommendations in the matter. 11) The Auditor shall give his opinion on ‘employment of the society and shall recommend about reduction or increase of staff as per requirement of the society. 12) The Auditor will also observe weather the society hhas arranged its internal audit as required under Section 22-B of Cooperative Societies Act, 1925 or not. 413) Incase of any embezzlement or misuse of funds during the period under audit, the ‘Auditor shall recomumend action under Section 50-A of Cooperative Societies Act, 11925 against the liable persons. 414) The audit reports, in case of Housing Societies, should also contain report of the following aspects “Verification of operational plan with time frame and its implementation. |. Litigation position. ‘Land documents. iv. Balance recoverable from each member a. Against cost of land; b. Against development charges: andc. Others. 15) A detailed report about development work should be supplied with the audit report. The report must contain the development work envisaged in the project and physical achievement with special reference to yearly targets and their implementation. 16) List of members duly certified by the society concerned according to the following Proforma relating to the audit period. a) S.No. b) Membership No. ) Name with Father's Name alongwith CNIC No. of the member. d) Address of the member e) Date of enrolment as member £) Date of approval by the Managing Committee. g) Date of confirmation by the General Body. h) Value of shares purchased. i) Deposits: - j) Against cost of land; k) Against development charges; and Others, 1) Balance recoverable from each member: - m) Against cost of land; n) Against development charges; and Others. 0) Remarks about present status. 117. The account statements duly verified by the Manager of concerned Bank Branch and address of the Bank should be given where the account(s) of the society is / are lying. 18. Schedule of Assets must contain all those items on which depreciation is worked rat. 49. You should not depend upon your assistants but should yourself devote time to audit work and discuss draft audit report with the Managing Committee of the Society Ltd; / institution before finalization / submission of the audit report. Wherein during the course of an audit, it appears that there exists any such ground as specified in Section 50-A of the Cooperative Societies Act, 1925, or amount embezzled by any member of the Managing Committee or member of the Society you must refer the matter giving full facts to the Registrar Cooperative Societies, Punjab, Lahore along-with your recommendations to proceed against the delinquents under the relevant provisions of law. While forwarding the audit report to this office, endorsement for the Institution and Deputy / Circle Registrar, Cooperative Societies concerned should also be made on the same letter for convenience of reference. Copy of complete audit report in all respects should be submitted / supplied to the following: Registrar Cooperative Societies, Punjab, Lahore. Deputy / Circle Registrar, Cooperative Societies concerned. iii, Institution concerned. 21. A 22. Audit report must be very clear, complying with International parameters of auditing and local laws. 23, All the correspondence with respective cooperative Society / institution must be acknowledged with signature and date by its responsible officer. 24. The report shall mention:- i ‘Whether the Society has made compliance of previous audit observations or not. Whether the DRCS / CRCS, concerned sent compliance report to the Registrar, Cooperative Societies, Punjab, Lahore or not? Rates of purchase & sale of electricity to the residents of the society where electricity |s purchased in bulk from WAPDA or other companies. iti,