Section 77: Ineligibility for Appointing Auditor

1) None of the following persons shall be appointed, or retained in if appointed, as an auditor:

(a) Director of a Cooperative Organisation,

(b) Member of the concerned Cooperative Organisation,

(c) An advisor or employee being appointed with regular payment of remuneration from the Cooperative Organisation,

(d) One who has not completed a period of three years after having been convicted of an offence relating to auditing,

(e) One who has not been declared bankrupt,

(f) One who has not completed a period of five years after having been convicted of the offence of corruption, cheating, or any other offence involving moral turpitude,

(g) A person, firm or company referred to in sub-Section (3) of Section 76,

(h) A person having a conflict of interest with the concerned Organisation or Association.

2) The auditor shall inform in writing the Cooperative Organisation stating that he/she is not ineligible pursuant to sub-section (1) before getting appointed.

3) In case any auditor is rendered ineligible to audit the account of any Cooperative Organization before expiry of his or her term of office is over or there arises a situation due to which he/she could not continue to remain as the auditor, he/she shall forthwith stop the works he/she is carrying on and information of the same shall be furnished to the Cooperative Organization in writing.

4) The audit carried out by the auditor appointed in contravention of this Section shall not be valid.