Statutory audit information
A plain-language guide for committee members: what a statutory audit is, who can conduct it, and where accounting and audit preparation fit in. General information, last reviewed November 2026.
Important: KritIQ Labs LLP is not a firm of chartered accountants and does not conduct, sign or certify statutory audits. KritIQ Labs Audit & Accounting prepares societies for audit and coordinates with their independently appointed auditor.
The basics
A statutory audit is an independent examination of a society's accounts that the law requires. A qualified auditor checks whether the books of account are properly kept, whether the financial statements give a true picture of the society's finances, and whether money has been collected and spent in line with the law, the bye-laws and members' decisions.
The audit ends with an audit report, signed by the auditor, which records any defects or irregularities found. For cooperative societies in Maharashtra, the auditor also gives the society an audit class (A, B, C or D) reflecting the overall state of its accounts and management.
A statutory audit is different from an internal review or accounting verification. Those help the committee keep its books in order; only the statutory audit, carried out by an authorised auditor, meets the legal requirement.
Who needs one
The rules below describe the usual position in Maharashtra. Check your society's registration and bye-laws.
Societies registered under the Maharashtra Co-operative Societies Act, 1960 must have their accounts audited every financial year. The Act has a dedicated chapter for co-operative housing societies (Chapter XIII-B, added in 2019).
Associations formed under the Maharashtra Apartment Ownership Act, 1970 follow the audit requirements in their bye-laws and deed of declaration.
Audit requirements depend on how the association is registered, for example as a society under the Societies Registration Act, 1860 or as a public trust under the Maharashtra Public Trusts Act, 1950, and on its own rules.
The auditor
For a cooperative housing society in Maharashtra, the audit must be done by an auditor appointed by the society's general body from the panel of auditors approved under the Act. Panel auditors include chartered accountants and other auditors the Co-operative Department has certified.
The auditor must be independent. That is why the person who prepares or writes up the society's books should not be the person who audits them, and why we stay on the preparation side.
Other associations should appoint an auditor qualified under the law that applies to them and as their bye-laws require.
The annual cycle
Exact deadlines are set by the Act and Rules in force for the year. Confirm them with your auditor.
The society's financial year ends on 31 March.
Accounts are completed, reconciled and the financial statements drafted and approved by the committee.
The appointed auditor examines the accounts and records and issues the audit report.
The audited statements and audit report are placed before the members at the AGM, which a CHS must hold within the time the Act allows after the year ends.
The society corrects the defects the auditor points out and reports the corrections within the prescribed time.
Why audits get delayed
These are the problems audit preparation solves. See how we handle them in society accounting and audit preparation.
Where we fit
| Work | What it involves | Done by | Result |
|---|---|---|---|
| Accounting verification | Ledgers, vouchers, collections, dues and payments checked against records | KritIQ Labs | Verification report and list of discrepancies for the committee |
| Audit preparation | Reconciliations, financial statements, schedules and documents organised for the auditor | KritIQ Labs | Draft statements and an indexed audit file, approved by the committee |
| Audit coordination | Document submission, auditor queries, follow-ups and help with observations | KritIQ Labs, on the society's behalf | A smoother audit; responses to queries and observations |
| Statutory audit | Independent examination of the society's accounts as required by law | A qualified, authorised auditor appointed by the society | Signed audit report (and audit class, where applicable) |
Accounting verification
Ledgers, vouchers, collections, dues and payments checked against records
Audit preparation
Reconciliations, financial statements, schedules and documents organised for the auditor
Audit coordination
Document submission, auditor queries, follow-ups and help with observations
Statutory audit
Independent examination of the society's accounts as required by law
This page is general information, not legal advice, and may not reflect later changes to the law. Check the current requirements with your auditor, your bye-laws or the Registrar. See our Disclaimer.
Tell us about your society and its accounting requirements. Our team will get in touch to understand your needs and suggest the right support.
We usually reply within 1–2 working days.