The Multi-State Co-operative Societies (Auditor's Report) Order, 2026 introduces standardised audit reporting to help regulators spot financially stressed societies early.

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• The Ministry of Cooperation has mandated the Multi-State Co-operative Societies (Auditor's Report) Order, 2026, known as MSCARO.
• The order is modelled on the Companies (Auditor's Report) Order and introduces standardised, risk-based audit reporting for multi-state cooperative societies.
• Its legal basis is Section 73(6) of the Multi-State Co-operative Societies (Amendment) Act, 2023.
• Inputs were taken from the RBI, ICAI, the CAG and cooperative societies while framing the order.
• The first phase covers larger societies crossing a Rs 1,000 crore threshold, with a longer-term aim to cover societies above Rs 50 crore.
• Auditors must report in a standardised format on financial, administrative, governance and statutory compliance parameters.
• The framework is designed to help the Central Registrar of Cooperative Societies identify higher-risk societies from audit observations.
• Reporting is expected to cover non-performing assets, overdue loans, liquidity, deposits, borrowings and related-party transactions.
• Integration with the CRCS portal is envisaged for dashboards and risk analytics, and cybersecurity and anti-money laundering checks are provided for where applicable.