Question

Arrange the main stages of Co-operative audit in its correct order.

1. Mechanical audit.

2. Preparation of financial statement.

3. Administrative audit.

4. Preparation and submission of audit report.

• A. 1,2,3,4
• B. 2, 3, 4, 1
• C. 3, 4, 2, 1
• D. 1,3,2,4

Answer 1

Answer:

D. 1,3,2,4

The main stages of a co-operative audit are:

• Planning: The auditor plans the scope and objectives of the audit.

• Execution: The auditor collects evidence.

• Reporting: The auditor summarizes the findings in a report.

• Follow-up: The auditor monitors the implementation of recommendations. 

The objectives of a co-operative audit include:

• Verifying the accuracy of the books of accounts

• Detecting and preventing clerical errors, errors of principles, and frauds

• Examining the affairs of the society to ensure they are in accordance with the Co-operative Law and the Principles of Co-operation

• Assessing the improvement in the economic conditions of the members

• Certifying the actual profit realized or loss incurred