The co-operative housing society is managed through a group of people i.e. the managing committee. They are responsible for various tasks, the main being maintaining the harmony of the society, apart from this they are responsible for the financials of the society. The income and expenses must be maintained and tracked by them.
Annual audits of co-operative housing societies are a mandate as per the Constitution of India. It is a mandate Under the Sec 17 of Co-operative Societies Act dated 1912, the register of Co-operative Societies can audit the accounts by giving general or special order. However, there is no mention of a compulsory audit by a Chartered Accountant.
To hire an auditor or to do it internally it all depends on the managing committee. Here are some guidelines that might help you in deciding the same.
By-law 152. The society if it considers it necessary, appoint an internal Auditor, to audit the accounts of the society, at the annual meeting of the general body and fix his remuneration.
By-law 153. The Secretary of the society shall provide all the books, registers, records before the internal auditor and the Statutory Auditor, in the office of the society or where the records are generally kept and furnish such information as may be required by him for the conduct of the audit of the accounts of the society.
By-law 154. Once the secretary receives the audit reports from the Statutory and Internal Auditors, the Secretary of the Society shall prepare draft audit rectification reports on the objections raised and recommendations, in the form 'O' specified under Rule 73 of the MCS Rules, 1961. He would then place the same before the meeting of the Committee, held next after the date of the receipt of the audit reports, for its approval. Also, they would work on the audit rectification report and it will be taken as provided under the given Rule.
If your society is considerably smaller, and you would like to do it in-house. Then the use of society management applications is a good tool to effectively manage accounts. ezeeServe is one such tool that also helps you to manage accounts and track expenses and incomes.