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AUDIT, INQUIRY AND

MEMBERS RIGHT
TO EXAMINE
BY: GROUP 5

ANNUAL AUDIT

The financial audit shall be conducted by an


external auditor who satisfies all the following
qualifications:
(1) He is independent of the cooperative or any
of its subsidiary that he is auditing; and
(2) He is a member in good standing of the
Philippine Institute of Certified Public Accountants
(PICPA) and is accredited by both the Board and
Accountancy and the Authority.

AUDIT REPORT

The auditor shall submit to the board of


directors and to the audit committee the
financial audit report which shall be in
accordance with the generally accepted
auditing standards for cooperatives as jointly
promulgated by the Philippine Institute of
Certified Public Accountants (PICPA) and the
Authority.

NON-LIABILITY FOR
DEFAMATIONS

The auditor is not liable to any person in an


action for defamation based on any act, done,
or any statement made by him in good faith in
connection with any matter he is authorized or
required to do pursuant to this Code.
In the Philippines, auditor liability can be limited
to an amount not exceeding triple the amount
of the transaction plus actual damages.

RIGHT TO EXAMINE

A member shall have the right to examine


the records required to be kept by the
cooperative under Article 52 of this Code
during reasonable hours on business days
and he may demand, in writing, for a copy of
excerpts from said records without charge
except the cost of production.

SAFETY OF RECORDS

Every cooperative shall, at its principal


office, keep and carefully preserve the
records required by this Code to be prepared
and maintained. It shall take all necessary
precaution to prevent its loss, destruction or
falsification.

THANK YOU!