Phil Kenkel

Bill Fitzwater Cooperative Chair

Oklahoma State University

Directors, managers, and advisers of new and developing cooperatives need to be well informed about the importance of an annual audit.

Reasons for Audit

Securing an annual audit of the cooperative’s financial records is the responsibility of the board of directors. Because the board acts as the trustee of the cooperative’s assets, it is responsible for safeguarding, auditing, and appraising the cooperative’s financial resources. The audit is a fundamental part …

Phil Kenkel

Bill Fitzwater Cooperative Chair

Oklahoma State University

The Audit

Most cooperative bylaws specify that the organization will hire an outside auditor to conduct an annual audit.  The audit helps to prevent deliberate misstatement of fact.  It also assures that judgment decisions are not duly biased in favor of management and to assure records are dependable.  The audit also assures that generally accepted accounting principles have been consistently followed and that the disclosure is complete.

The audit is a …