Summary: The Institute of Chartered Accountants of India (ICAI), through its Cooperation and NPO Committee, is supporting reforms in the cooperative sector following 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. ICAI contributed to the initiative by reviewing the draft Order and submitting a comprehensive audit checklist to the Ministry. The new framework aims to strengthen statutory audit reporting for multi-state cooperative societies, improve accountability and transparency, facilitate the identification of financial irregularities and governance-related concerns, and promote responsible management of members’ resources. ICAI is also developing a Guidance Note on MSCARO 2026 to help auditors address key audit considerations, improve consistency and strengthen statutory and regulatory compliance. Alongside these policy-level initiatives, ICAI is undertaking capacity-building programmes to improve the financial, audit and regulatory capabilities of cooperative societies and departmental auditors. Programmes conducted in Leh and Kargil focused on financial management, governance and regulatory compliance, while a programme organised in association with the Cooperation Department, Government of Mizoram, sought to enhance departmental auditors’ technical knowledge and professional competencies. Through these initiatives, ICAI continues to contribute to the Government of India’s vision of ‘Sahakar se Samriddhi.’
Institute of Chartered Accountants of India
Public Relations Committee
The Institute of Chartered Accountants of India
October 30, 2026
ICAI Press Release
ICAI Advances Cooperative Sector Reforms Through New Audit Framework and Nationwide Capacity-Building Programmes
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. The enhanced audit framework for cooperative societies also addresses the need for improved financial oversight and accountability.
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. These developments are relevant to the broader framework governing audit and governance of multi-state cooperative societies.
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.’
About ICAI
The Institute of Chartered Accountants of India (ICAI) is a statutory body set up by an Act of Parliament under the Chartered Accountants Act, 1949 for the regulation and development of the profession of Chartered Accountancy in India. The Institute functions under the administrative supervision of the Ministry of Corporate Affairs, Government of India. With over 16 Lakh Members and Students, today ICAI is the largest professional accountancy body in the world. ICAI has a wide network of 5 Regional Councils and 189 Branches within India and a global presence with 55 Overseas Chapters and 30 Representative Offices spanning 85 cities across 47 Countries worldwide.
