The proposed guidance will help auditors implement the new MSCARO 2026 framework and strengthen financial reporting and compliance in multi-state cooperative societies.
The Institute of Chartered Accountants of India (ICAI) is preparing a guidance note to help auditors implement the new audit reporting framework for multi-state cooperative societies.
The development follows the notification of the Multi-State Co-operative Societies (Auditor’s Report) Order, 2026, or MSCARO 2026, by the Union Cooperation Ministry on October 14.
ICAI President Prasanna Kumar D said the new framework would support timely identification of financial and compliance risks while strengthening oversight and encouraging corrective action.
The proposed guidance note is expected to provide auditors with a structured reference for addressing key audit considerations, improving consistency in audit practices and strengthening compliance with applicable statutory requirements.
MSCARO 2026 has been developed using inputs from the Reserve Bank of India, ICAI, the Comptroller and Auditor General of India and cooperative societies.
Modelled on the Companies (Auditor’s Report) Order applicable to corporate entities, the framework introduces a uniform, risk-based format for statutory audit reporting.
Auditors will be required to report on financial, administrative, governance and compliance parameters through standardised yes-or-no responses accompanied by remarks.
The framework will be implemented in phases and is intended to strengthen transparency and accountability across the multi-state cooperative sector.
