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

(1) In addition to the provisions contained in sub-rule

(2), the annual audit of the Trade Union shall be conducted by an auditor qualified under subsection (1) of section 141 of the Indian Companies Act, 2013.

(2) Where the membership of a Trade Union did not any time being during the Financial Year exceed 2500, the annual audit of the account may be conducted-

(a) by a local auditor in Government service.

(b) by any person who has served in the State Audit & Account Service;

(c) by any auditor appointed to audit accounts of a co-operative society;

(d) by Registrar of a co-operative society or any state co-operative organization recognized for this purpose.

(3) Notwithstanding anything contained in sub-rule

(1), no person, who, at anytime during the year was entrusted with any part of the funds or securities belonging to the Trade Union shall be eligible to audit the accounts of that Union

(4) The auditor or auditors appointed in accordance with the rules 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 there after sign the auditors declaration appended to Form-B, 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, unvouched or not in accordance with the code 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 code;

(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 not brought to account by any person.