Auditors not make report as per bye laws

sandeep (Querist) 30 August 2016 This query is : Resolved
There are 30 members in our housing society. Society register in 2001. 2 members are defaulter since registration and prior registration. Jt Registrar already give directions to society that do not charge maintenance prior society registration in 2010. But in audit report auditor still show joint amount in balance sheet of both member till 2015 now this year balance sheet auditor show the balance sheet 2 different amount 1 is prior registration and 2 is after registration. Now the defaulter member are take action against auditor. So the question is if auditor is making mistake is he liable to suspend his license as well as what will be effect on society. Also now committee send the statement of account after registration period the outstanding amount is not match to the balance sheet which is already created from 2001. Now if the matter is in auditor judiciary who will hit the more trouble auditor or society. And now defaulter is liable to pay 21% interest on outstanding dues . He can take doubt that he is not getting the proper bill after registration so he is not liable to pay interest.

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Guest (Expert) 30 August 2016
Mr. Sandeep,

If auditor has shown both the figures, pre and post registration, in his audit report, he is not at fault. He has rightly performed his job. Auditor has to report the status of the society funds, e.g., revenue & expenditure, profit & loss, balance sheet, assets & liabilities, etc., in the prescribed format. He cannot go beyond his scope of duties and responsibilities as per the prescribed accounting standards.

Only the society can be blamed for any irregularity, if the MC fail to send properly audited accounts to the Registrar or does not bring to the notice of the members in the AGM.

Rajendra K Goyal (Expert) 30 August 2016
Agree with the expert P S Dhingra.

sandeep (Querist) 30 August 2016
Thanks for reply if already jt Registrar passed the order committee can not claim prior registration then still how can auditor show the amount also committee not challenge the order for more than 6 years. Also auditor want to do audit as per bye laws then how can he brought prior registration amount in current society account.

Guest (Expert) 30 August 2016
Mr. Sandeep,

Ifs and buts have no relevance, when you have not narrated the whole story with full background and related facts in chronological order. You asked a general query, the reply was given accordingly. There is no use in putting vague supplementary queries without facts & figures.

If you want detailed discussion on the issue, there ar two routes for you to follow for your satisfaction, as follows;

(1) take up the issue in the AGM, get everything discussed in detail, and get appropriate resolution passed for implementation by the MC; and

(2) Hire services of some capable lawyer at local lawyer show the related documents to him and get proper legal opinion.

Raj Kumar Makkad (Expert) 30 August 2016
Nothing to add more in the sincere advice of ld. Dhingra ji. One should be honest in his approach. A wilful defaulter of society dues has no right to take help of this charity site.