A significant milestone in strengthening accountability and transparency in the cooperative sector is the notification of the Multi-State Co-operative Societies (Auditor’s Report) Order, 2026 (MSCARO, 2026), by the Ministry of Cooperation on 14 October 2026. The Institute of Chartered Accountants of India (ICAI), through its Cooperation and NPO Committee, contributed to this important initiative by reviewing the draft Order and submitting a comprehensive audit checklist to the Ministry of Cooperation.
The Order marks an important step towards strengthening the statutory audit framework for multi-state cooperative societies. Cooperative societies serve millions of members across sectors, with people relying on these institutions for credit, livelihoods and other economic opportunities. Strengthening their audit framework can contribute to greater institutional credibility, help build public confidence and promote responsible management of members’ collective resources.
Speaking on the achievement, CA. Prasanna Kumar D, President, ICAI, said, "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. This can support the timely detection of financial and compliance risks, strengthen oversight and encourage corrective action wherever necessary."
Further strengthening its commitment to enhancing audit quality in the cooperative sector, the ICAI is also working on the development of a Guidance Note on MSCARO 2026. 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.
Taking professional expertise beyond policy frameworks, ICAI is also strengthening capacity at the grassroots level. ICAI is undertaking capacity-building initiatives to equip cooperative societies and departmental auditors with the knowledge and skills required to meet evolving financial, audit and regulatory requirements.
As part of these efforts, ICAI organised Capacity Building Programmes for cooperative societies in Leh and Kargil. The programmes focused on strengthening financial management, improving governance practices and enhancing awareness of regulatory compliance requirements among cooperative societies in Ladakh.
In another key initiative, the Committee organised a Capacity Building Programme for Departmental Auditors in association with the Cooperation Department, Government of Mizoram. The programme focused on enhancing the technical knowledge and professional competencies of departmental auditors to improve audit quality and strengthen financial oversight within the cooperative sector.
Through a combination of policy-level contributions, professional development and collaboration with government departments, the ICAI continues to support the Government of India's vision of 'Sahakar se Samriddhi.'
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