Rule 9. Manner of annual audit under clause (j) of section 7

(1) The annual audit of the account of any registered trade union or federation of union shall be conducted by an auditor authorized to audit the account of companies under section 139 of Companies act, 2013;

Provided that where the membership of trade union did not at any time during the financial year exceed 250, annual audit of the accounts may be conducted by any two members of the union;

(2) The auditor or auditors shall be given access to all the books of the Trade Union and shall verify the annual return with the accounts and vouchers relating thereto and shall thereafter sign the auditor’s declaration appended to Form II, indicating separately on that Form under his signature or their signatures, a statement showing in what respect he or they find the return to be incorrect, un vouched or not in accordance with the Act. The particulars given in this statement shall indicate –

(a) every payment which appears to be unauthorized by the rules of the Trade Union or contrary to the provisions of the Act;

(b) the amount of any deficiency or loss which appears to have been incurred by the negligence or misconduct of any person;

(c) the amount of any sum which ought to have been but is not brought to account by any person;

Provided that in case of Audit of political funds of a registered Trade Union, the audit shall be carried out along with the audit of the general account of the Trade Union and by the same auditor or auditors.