1. Auditor- (1) a friend, philosopher and guide : – We have already seen that the auditor of a co-operative society has to function as its friend, philosopher and guide. He has to tender advice on all financial and administrative matters whenever his advice is sought and suggest ways for improvement of their affairs and for increasing their usefulness to their members. Co- operative audit has not only to be critical but also curative and educative. The auditor has not only to point out mistakes, but has also to suggest ways to avoid their recurrence in future. He has also educate members of the committee and also the ordinary members and point out ways for improving it’s working and increase its usefulness.
The auditor has not only to criticise the actions of the management, but has always to think of the possibilities for improvement and tender suitable advice to the committee.
2. Qualities required of an Auditor : – The foremost quality that an auditor should have is an abundance of commonsense. He has to cultivate a keen sense of observation and has always to be on the look out for whatever is unusual or irregular. Since the time at his disposal is always limited, being required to complete the audit within the time prescribed in the Act, he has to plan and carry out his work methodically and thoroughly so as to ensure that all important matters receive adequate attention and nothing which is irregular or out of the way escapes his notice. The work he has to do being mechanical and tiring, he is required to possess a good deal of patience. All the same, he is required to apply due care and skill in the performance of his duties lest he may be charged with negligence. He has always to be diligent and hard working and at the same time guard himself against methods which tend to be mechanical or appear to be short cuts and are, therefore, fatal to accurate and efficient audit. Accuracy, concentration and patience are the three invaluable qualities, which every auditor must possess. He is also required to have a quick grasp and ability to read between the lines so that he cannot be deceived.
Since the work involved is voluminous and many times beyond the capacity of any one individual, the auditor has to rely on his assistants to carry out most of the routine work so as to keep himself free to attend to the more important matters. He has, therefore, to map out his work methodically and distribute it amongst his assistants, with clear instructions as to what is to be done, why it is to be done and how it is to be done, he has further to instill in them a sense of loyalty and faithfulness and at the same time to encourage and assist them to think for themselves and make their own contributions. All this calls for considerable supervisory skill and administrative talent.
3. Attitude towards non-officials : – It has to be noted that the auditor has not only to deal with the books of accounts and records, but has also to supplement the information available from the books by calling for clarifications and explanations. But putting intelligent questions, he has to elicit the required information without arousing any suspicions in the minds of those whom he questions. During the course of the performance of his arduous duties, an auditor of a co-operative society has to deal with all sorts of people from simple junior clerks to highly placed executives and director, who are shrewd businessmen and many of whom on account of their wealth and social status might not regard the auditor as an important person. The auditor should, therefore, possess necessary tact and talent to deal with men and matters. He has always to remember that officebearers of co-operative societies are mostly honorary workers, who are particularly susceptible to any sort of adverse comment and are, therefore, required to be handled with great care and due courtesy. At the same time, he should have the courage of his convictions and be bold enough to express in no uncertain terms his findings and his opinion on the genuineness and propriety of the transactions examined by him.
4. Honesty and sincerity : – Lastly, he is required to be honest and sincere. He must not certify what he does not believe to be true and must take reasonable care and apply due skill before he believes that what he certifies is true.
It has to be noted that co-operative societies have an important place in the economic set up of our country. The active assistance, large-scale financial involvement and even partnership in their affairs by the State necessitate that the auditor should apply more than ordinary care and skill in the discharge of his duties because audit is the only known method to bring to light errors and grave irregularities.
5. Independence of the Auditor : – The auditor should be independent in performing his duties as an auditor. He should express his opinion without fear or favour.
FOR MORE DETAILS CALL:
VED LEGAL,
Adv. Gajanan Rahate
Mob: 9763040088
E_mail: [email protected]