15 Questions
What does 'PROPERTY' refer to in the context of a cooperative?
Assets owned or controlled by the cooperative
According to Art. 77 of the Code, what does 'share' refer to?
Unit of capital with fixed par value
What is the definition of 'CAPITAL' in the context of a cooperative?
Financial resources and contributions made by members
What does 'REVOLVING CAPITAL' refer to in the context of a cooperative?
Capital from forced savings
Which of the following is NOT a possible opinion that an external auditor may include in the audit report?
A favorable opinion
Which of the following is considered as a 'FUND' in the context of a cooperative?
Subsidies
What does Art. 84 of the Code provide regarding a member's right in a cooperative?
Right to examine financial records required to be kept by the cooperative
What does the non-liability for defamation provision state about the external auditor?
The external auditor is not liable for any verbal or written remarks made during the audit process
Which financial aspects are included in the contents of an external auditor’s report for a cooperative?
Statement of assets and liabilities, earnings, expenses, and net surplus, report on losses and bad debts
What is the main task of the external auditor in an annual audit of a cooperative?
Verifying the cooperative's compliance with generally accepted accounting principles
In an annual audit, what is the task of the external auditor?
To ensure compliance with generally accepted accounting principles
Which tenor of opinion in an audit report indicates that the cooperative has followed the accounting principles consistently?
An unqualified opinion
What does Art. 84 of the Code provide regarding a member's right to examine in a cooperative?
It permits examination of only a specific set of records.
Which financial aspects are included in the contents of an external auditor’s report for a cooperative?
Earnings, expenses, and net surplus only
What is the non-liability for defamation provision stating about the external auditor?
The auditor is not liable for any defamation during the audit process.
Study Notes
Cooperative Terms and Concepts
- 'PROPERTY' in a cooperative refers to the assets owned by the cooperative.
- A 'SHARE' as per Art. 77 of the Code refers to the interest of a member in the cooperative society.
- 'CAPITAL' in a cooperative refers to the total amount of money invested in the business.
Revolving Capital and Funds
- 'REVOLVING CAPITAL' in a cooperative refers to the capital that is used for the day-to-day operations of the cooperative.
- A 'FUND' in a cooperative refers to a sum of money set aside for a specific purpose, such as a reserve fund or a sinking fund.
Audit Reports and External Auditors
- An external auditor's report for a cooperative may include opinions such as Unqualified, Qualified, Adverse, or Disclaimer, but NOT a "True and Fair" opinion.
- A non-liability for defamation provision states that an external auditor is not liable for any information provided in good faith.
- The contents of an external auditor's report for a cooperative include financial aspects such as the balance sheet, income statement, and cash flow statement.
- The main task of an external auditor in an annual audit of a cooperative is to express an opinion on the financial statements.
Members' Rights
- Art. 84 of the Code provides that a member of a cooperative has the right to examine the books and records of the cooperative.
- A member of a cooperative has the right to examine the documents of the cooperative, as per Art. 84 of the Code.
Test your knowledge on capital sources, investment opportunities, and fund safeguarding strategies for cooperatives. This quiz covers the rules and regulations implementing provisions of the Cooperative Code of the Philippines.
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