Statutory Audit
Statutory Audit is the mandatory annual examination of a co-operative housing society's financial records by an empanelled auditor, as required under Section 81 of the Maharashtra Co-operative Societies Act 1960.
What is Statutory Audit?
Every Maharashtra co-operative housing society must get its accounts audited annually by an auditor empanelled by the Registrar of Co-operative Societies. The audit covers all financial transactions of the year and results in the issuance of Form J (audit report) with a grade.
The audit examines: financial statements, member ledgers, vouchers, bank reconciliation, fund balances (Sinking Fund, Repair Fund), share register, investment records, and compliance with bye-laws.
Why it matters
Statutory Audit is not optional. A society that defaults on audit becomes an 'audit defaulter' — the Registrar can refuse to register flat transfers, block elections, and in serious cases appoint an administrator.
The audit grade (A through D) affects the society's reputation. Grade A is 'no major deficiencies'; Grade D is 'serious irregularities requiring investigation'.
Legal & regulatory context
Section 81, MCS Act 1960 mandates annual audit. Form J is prescribed under Rule 69 of the Maharashtra Co-operative Societies Rules. The audit must be completed and Form J filed within 6 months of year-end.
Only auditors on the Registrar's empanelled list can conduct statutory audit. Using a non-empanelled auditor renders the audit invalid.
How SocietyBee handles it
SocietyBee prepares all audit-ready reports — Income & Expenditure Account, Balance Sheet, Receipts & Payments Account, all fund schedules, and member ledger summaries — in the prescribed format, reducing audit preparation time from weeks to hours.
Try SocietyBee free →Frequently asked questions
Who appoints the statutory auditor for a housing society?
The General Body appoints the auditor from the Registrar's empanelled list at the AGM. The Registrar can appoint an auditor if the society fails to do so.
How long does a housing society statutory audit take?
For a well-maintained society with organized books, 2–5 days. For societies with poor records or complex transactions, it can take 2–4 weeks.