(1) Save as provided in sub-clauses (2), (3), (4) and (5) of this regulation, the annual audit of the accounts of any registered Trade Union shall be conducted by an auditor authorised to audit the accounts of companies under section 144(1) of the [Indian Companies Act, 1913.]
(2) Where the membership of a Trade Union did not at any time during financial year exceed 2500 the annual audit of the accounts may be conducted :-
(a) by any examiner of local fund accounts; or
(b) by any local fund auditor appointed by the [State] Government; or
(c) [or] by any person, who, having held an appointment under Government in any audit or accounts department is in receipt of a pension of not less than Rs. 200 per mensem.
(3) Where the membership of a Trade Union did not at any time during the financial year exceed 750, the annual audit of the accounts may be conducted :-
(a) by any two persons holding office as magistrates or judges or as members of any municipal council, district board, or legislative body; or
(b) by any person who, having held an appointment under Government in any audit or accounts department, is in receipt of a pension from Government of not less than Rs.
75 a month; or
(c) by any auditor appointed to conduct the audit of any co-operative societies by Government or by the Registrar of Co-operative Societies or by any [State] Cooperative organisation recognized by Government for this purpose.
(4) Where the membership of a Trade Union did not any time during the financial year exceed 250, the annual audit of the accounts may be conducted by any two members of the Union.
(5) Where the Trade Union is a federation of Unions, and the number of unions affiliated to it at any time during the financial year did not exceed 50, 15 or 5 respectively, the audit of the accounts of the federation may be conducted as if it had not at any time during the year had membership of more than 2,500, 750 or 250, respectively.
14. Notwithstanding anything contained in regulation 13, no person, who at any time 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.
15. The auditor or auditors appointed in accordance with the regulation 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 thereafter sign the auditor's declaration appended to form D, 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 Act. The particulars given in this statement shall indicate :-
(a) every payment which appears to be unauthorised by the rules of the Trade Union or contrary to the provisions of the Act.
(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 put is not brought to account by any person.
16. The audit of the political fund of a registered Trade Union shall be carried out along with the audit of the general account of the Trade Union and by the same auditor or auditors.