Misappropriation of Cash In Cooperative Societies: Role of Auditors in Fixing The Accountability And Responsibility

Abstract

One of the biggest challenges in Cooperative Societies administration is in the area of Cash Management. Most of the frauds reported in societies are due to misappropriation of Funds as there is no proper mechanism followed in order to fix the responsibility and accountability. It is common to see that most of the societies are not computerised and also not managed by qualified people there is huge scope for misappropriation and embezzlement of funds. Karnataka State Cooperative Act has few important provisions laid out not only to report such misappropriation of funds but also fix the responsibility and accountability on the Auditors to disclose the same in the appropriate financial statements in their Audit report.