ICAI to issue guidance note on new audit reporting framework for multi-state cooperative societies
New Delhi: The Institute of Chartered Accountants of India (ICAI) plans to come out with a guidance note on the new audit reporting framework for multi-state cooperative societies.
On October 14, the cooperation ministry notified the Multi-State Co-operative Societies (Auditor's Report) Order, 2026 or MSCARO 2026. The framework will be implemented in a phased manner.
ICAI President Prasanna Kumar D on Friday said MSCARO would help support the timely detection of financial and compliance risks, strengthen oversight and encourage corrective action wherever necessary.
"Introduction of MSCARO, 2026 will give a more structured approach to audit reporting, is expected to help auditors examine critical aspects of a cooperative society's financial functioning, flag potential irregularities and identify governance-related concerns," he said in a statement.
To enhance the audit quality in the cooperative sector, ICAI is working on developing a guidance note on the new framework.
"The proposed guidance aims to provide auditors with a structured reference for addressing key audit considerations, improving consistency in audit practices, and strengthening compliance with applicable statutory and regulatory requirements," it said.
MSCARO has been prepared based on inputs from the Reserve Bank of India, ICAI, Comptroller and Auditor General of India and the societies.
Under the Multi-State Co-operative Societies (Amendment) Act, 2023, the ministry is empowered to prescribe auditing and accounting standards for such entities.
Modelled on the Companies (Auditor's Report) Order (CARO) that applies to the corporate sector, MSCARO sets up a uniform, risk-based format for statutory audit reporting.
Auditors will have to report on financial, administrative, governance and compliance parameters through standardised Yes/No responses, with remarks.
On October 14, the cooperation ministry notified the Multi-State Co-operative Societies (Auditor's Report) Order, 2026 or MSCARO 2026. The framework will be implemented in a phased manner.
ICAI President Prasanna Kumar D on Friday said MSCARO would help support the timely detection of financial and compliance risks, strengthen oversight and encourage corrective action wherever necessary.
"Introduction of MSCARO, 2026 will give a more structured approach to audit reporting, is expected to help auditors examine critical aspects of a cooperative society's financial functioning, flag potential irregularities and identify governance-related concerns," he said in a statement.
To enhance the audit quality in the cooperative sector, ICAI is working on developing a guidance note on the new framework.
"The proposed guidance aims to provide auditors with a structured reference for addressing key audit considerations, improving consistency in audit practices, and strengthening compliance with applicable statutory and regulatory requirements," it said.
MSCARO has been prepared based on inputs from the Reserve Bank of India, ICAI, Comptroller and Auditor General of India and the societies.
Under the Multi-State Co-operative Societies (Amendment) Act, 2023, the ministry is empowered to prescribe auditing and accounting standards for such entities.
Modelled on the Companies (Auditor's Report) Order (CARO) that applies to the corporate sector, MSCARO sets up a uniform, risk-based format for statutory audit reporting.
Auditors will have to report on financial, administrative, governance and compliance parameters through standardised Yes/No responses, with remarks.