What is society audit and accounting?

Society Audit and Accounting is conducted to keep a check on the daily activities carried out and ensure there is no malpractice or error occurred. The audit's goal is to check if certain actions have impacted society.

What is a society audit?

Society audit is a close examination of the record of business, maintenance of book of accounts, financial transactions, and other records of business that engage in society's affairs. How do you conduct society auditing? To conduct a society audit, you need to first appoint a statutory auditor. The auditor will check the records and accounts of the society. The following are the checklist for the housing society audit:

· Check for misstatements or irregularities in the record-keeping book

· Expose any embezzlement, misappropriation of funds, or fraud in the system

· Verify the credibility of accounts statement of society

· Study the various financial transactions and ensure

· Physically investigate the assets of the society

What is society accounting?

 Society accounting is mandatory as that practice helps identify and keep records of all the financial transactions that occurred in society. As societies are obligated to file income tax returns, it is necessary to facilitate proper society accounting to file income tax returns and pay the taxes on time. Society is also liable to pay GST if the individual maintenance charges fall below 7500/-, and the society can also avail the benefits of the input tax.

 The following are the statement and account that the housing society has to consider in their accounting process:

· Vendor payments

· List of bank accounts

· Copies of legal documents

· Trial balance · Payroll reports

· Stock and asset register

· Audit objections and records

· Share & debentures register, loan registers

· Property registers

· Minutes of meeting books

Benefits of Society auditing and accounting:

Prevent Fraud: Avoiding fraud and malpractices is the number one priority for any establishment. In this case, the society audit and accounting practices ensure that the book-keeping is done accurately, and auditing is facilitated to identify and eliminate any unlawful practices.

Follow Compliance: Conducting a society audit ensures that your society meets all requirements and regulations provided by the government. Improve the book-keeping process: Society book-keeping (Accounting) is not always kept at its best standards. Thus, an auditor can show the best ways to keep records. It will help give clear visibility and accelerate the auditing process.

Credibility: When people try to buy a property in a housing society, they consider even the society's accounting and managerial system. Knowing that society follows strict accounting practices and conducts annual audits creates trust and credibility. The members of the society can live in harmony and stay confident with society's decision-making process.

Better decision-making process: Only when the accounting is done correctly and the records are kept in systematic order, the decision-making process becomes easy for the society members based on the records. The income, expenses, assets, and liabilities are scrutinized when the audit has been conducted. The critical examination of this data shows that the information is reliable and error-free, helping decision-makers make smart decisions.

Conclusion: Every society is mandated to keep records by facilitating daily account practices that note all daily financial transactions. Society audit should be conducted to check all records for any discrepancies or errors thoroughly.

If you are planning to appoint a statutory auditor, you have to make sure that you appoint an auditor with the necessary license and certificate to conduct an audit. Legal Junction is a one-stop to all your auditing needs. We provide a smooth and seamless experience to ensure that society audit is done with total transparency and provide ways to improve your accounting system.

We offer all kinds of legal services, whether it is auditing or something else