ICAI contributes to the new MSCARO 2026 framework and expands capacity-building initiatives to improve transparency, audit quality and governance across India’s cooperative sector.
The Institute of Chartered Accountants of India (ICAI) is strengthening its efforts to improve financial accountability and transparency 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 October 14, 2026.
Through its Cooperation and NPO Committee, ICAI contributed to the initiative by reviewing the draft order and submitting a comprehensive audit checklist to the Ministry of Cooperation.
The new framework aims to strengthen the statutory audit system for multi-state cooperative societies, which serve millions of members across sectors and play an important role in providing credit, supporting livelihoods and creating economic opportunities.
ICAI President CA Prasanna Kumar D said the introduction of MSCARO 2026 would bring greater structure to audit reporting and help auditors examine critical aspects of cooperative societies’ financial functioning. He added that the framework could support the identification of potential irregularities, governance-related concerns and financial compliance risks while encouraging timely corrective action.
As part of its continued efforts, ICAI is also developing a Guidance Note on MSCARO 2026. The proposed document will provide auditors with a structured reference for addressing key audit considerations, improving consistency in audit practices and strengthening compliance with statutory and regulatory requirements.
Beyond its contribution to the policy framework, ICAI is undertaking capacity-building initiatives to equip cooperative societies and departmental auditors with the knowledge and professional skills needed to meet evolving financial and regulatory requirements.
The institute has organised capacity-building programmes for cooperative societies in Leh and Kargil, focusing on financial management, governance practices and regulatory compliance.
In another initiative, ICAI’s Cooperation and NPO Committee organised a capacity-building programme for departmental auditors in association with the Cooperation Department of the Government of Mizoram. The programme focused on improving technical knowledge and professional competencies to strengthen audit quality and financial oversight.
Through policy contributions, professional training and collaboration with government departments, ICAI continues to support the Government of India’s vision of ‘Sahakar se Samriddhi’.
