UNIVERSITY OF NUEVA CACERES

AUDITING & ASSURANCE: SPECIAL INDUSTRIES

COOPERATIVES
GROUP 1
WHAT IS COOPERATIVE?

WHAT IS THE OBJECTIVES AND GOALS OF COOPERATIVES?

WHAT ARE THE CATEGORIES OF COOPERATIVES?

WHAT ARE THE TYPES OF COOPERATIVES?

TERMS OF COOPERATIVE

REQUIREMENTS FOR REGISTRATION WITH CDA

COOPERATIVE MEETINGS, QUORUM, & VOTING SYSTEM

WHO CAN BE MEMBERS OF COOPERATIVE?

ABOUT ITS BOARD OF DIRECTORS

WHAT ARE THE PRIVILEGES OF COOPERATIVE?

HOW TO ORGANIZE A COOPERATIVE?

SOURCE OF CAPITAL OF COOPERATIVES

ANNUAL AUDIT

ACCREDITATION OF COOPERATIVE EXTERNAL & PERFORMANCE AUDIT

WHAT IS
COOPERATIVES?
According to the Philippine Cooperative Code of
2008 or Republic Act No.9520 “A cooperative is an
autonomous and duly registered association of persons,
with a common bond of interest, who have voluntarily
joined together to achieve their social, economic and
cultural needs and aspirations by making equitable
contributions to the capital required, patronizing their
products and services and accepting a fair share of
risks and benefits of the undertaking in accordance with
the universally accepted cooperative principles.” Note:
The Cooperative Development Authority
(CDA) is the sole government agency
mandated to register all types of
cooperatives.
 OBJECTIVES AND GOALS

(a) Provide goods and services to its members to enable them to attain
increased income, savings, investments, productivity, and purchasing power,
and promote among themselves equitable distribution of net surplus through
maximum utilization of economies of scale, cost-sharing and risk-sharing;

(b) Provide optimum social and economic benefits to its members;

(c) Teach them efficient ways of doing things in a cooperative manner;

 OBJECTIVES AND GOALS
(d) Propagate cooperative practices and new ideas in business and
management;

(e) Allow the lower income and less privileged groups to increase their
ownership in the wealth of the nation; and

(f) Cooperate with the government, other cooperatives and people-oriented

organizations to further the attainment of any of the foregoing objectives.
CATEGORIES OF
COOPERATIVES

PRIMARY
the members are Natural Persons

SECONDARY
members of which are primaries

TERTIARY Note: those with cooperative memberships are considered

federations or unions as the case may be. In terms of territory,
cooperatives shall be categorized according to areas of
members of which are secondary
operation which may or may not coincide with the political
cooperatives subdivisions of the country. Those organized by minors shall be
considered a laboratory cooperative and must be affiliated with
a registered cooperative. It is governed by special guidelines
promulgated by the CDA.
WHAT ARE THE TYPES OF
COOPERATIVES?
Credit
Credit Cooperative
Cooperative :: promotes and undertakes savings and lending services among its
members. It generates a common pool of funds in order to provide financial assistance and
other related financial services to its members for productive and provident purposes;

Consumer
Consumer Cooperative
Cooperative :: primary purpose is to procure and distribute commodities to
members and non-members;

Producers Cooperative: : undertakes joint production whether agricultural or industrial. It is

Producer Cooperative
formed and operated by its members to undertake the production and processing of raw
materials or goods produced by its members into finished or processed products for sale by
the cooperative to its members and non-members.

Marketing
Marketing Cooperative
Cooperative :: one which engages in the supply of production inputs to members
and markets their products;
WHAT ARE THE TYPES OF
COOPERATIVES?
Service
ServiceCooperative
Cooperative: : engages in medical and dental care, hospitalization, transportation,
insurance, housing, labor, electric light and power, communication, professional and other
services;

Multi-Purpose
Multi Cooperative :: combines two (2) or more of the business activities of these
Purpose Cooperative
different types of cooperatives;

Advocacy Cooperative
Advocacy Cooperative : : a primary cooperative which promotes and advocates
cooperativism among its members and the public through socially-oriented projects,
education and training, research and communication, and other similar activities to reach
out to its intended beneficiaries;

AgrarianReform
Agrarian ReformCooperative
Cooperative: : organized by marginal farmers majority of which are
agrarian reform beneficiaries for the purpose of developing an appropriate system of land
tenure, land development, land consolidation or land management in areas covered by
agrarian reform;
WHAT ARE THE TYPES OF
COOPERATIVES?
Cooperative
Cooperative Bank
Bank :: organized for the primary purpose of providing a wide range of
financial services to cooperatives and their members;

Dairy Cooperative
Dairy Cooperative :: members are engaged in the production of fresh milk which may be
processed and/or marketed as dairy products;

Education
Education Cooperative
Cooperative :: organized for the primary purpose of owning and operating
licensed educational institutions, notwithstanding the provisions of Republic Act No.9155,
otherwise known as the Governance of Basic Education Act of 2001;

Electric Cooperative
Electric Cooperative :: organized for the primary purpose of undertaking power generation,
utilizing renewable sources, including hybrid systems, acquisition and operation of sub
transmission or distribution to its household members;
WHAT ARE THE TYPES OF
COOPERATIVES?
Financial Service
Financial Service Cooperative
Cooperative :: organized for the primary purpose of engaging in savings
and credit services and other financial services;

Fishermen
FishermenCooperative
Cooperative: : organized by marginalized fishermen in localities whose products
are marketed either as fresh or processed products;

Health
Health Service
ServicesCooperative
Cooperative: : organized for the primary purpose of providing medical,
dental, and other health services;

Housing Cooperative
Housing Cooperative :: organized to assist or provide access to housing for the benefit of
its regular members who actively participate in the savings program for housing. It is co-
owned and controlled by its members;

Insurance
InsuranceCooperative
Cooperative: : engaged in the business of insuring life and property of
cooperatives and their members;
WHAT ARE THE TYPES OF
COOPERATIVES?
Single-Line / Single -Purpose Cooperative: those undertaking activities which are related
to its main line of business or purpose.

Laboratory Cooperative : cooperatives duly recognize by the authority, formed and

managed principally by minors and is affiliated with another registered cooperative called
guardian cooperative. 15 or more minors who are Filipino citizens, actually residing in the
community or enrolled in an educational institution within or near the area of operation of the
Guardian Cooperative or out of school minor actually residing in the community, may organize
Laboratory Cooperative composed or minors, which shall be seven (7) years old but below
eighteen (18) years of age.

Guardian
I Cooperative : shall refer to duly registered cooperative to which a laboratory
cooperative is affiliated with.
WHAT ARE THE TYPES OF
COOPERATIVES?
Transport
TransportCooperative
Cooperative: : includes land and sea transportation, limited to small vessels, as
defined or classified under the Philippine maritime laws, organized under the provisions of
RA 9520;

Water Service
Water Service Cooperative
Cooperative :: organized to own, operate and manage waters systems for
the provision and distribution of potable water for its members and their households;

Workers Cooperative
Workers Cooperative :: organized by workers, including the self-employed, who are at the
same time the members and owners of the enterprise. Its principal purpose is to provide
employment and business opportunities to its members and manage it in accordance with
cooperative principles; and

Other Types
Other types of Cooperative
Cooperatives: : as may be determined by the Authority.
TERMS
A cooperatives shall exist for periods not
exceeding:
from the date of
registration unless
sooner dissolve or
50 years unless said period is
extended.

No extension can be made earlier than:

prior to the original or

5 years subsequent expiry

date/s unless there is a
reason known by the
authority.
Requirements
for Registration
with CDA

Except for a cooperative union in Article 25, a The CDA shall periodically assess the
cooperative can't register without: required paid-up share capital and may
officers' bonds, treasurer's sworn statement increase it every 5 years when needed,
indicating 25% share capital subscribed, and consulting the cooperative sector and the
at least 25% paid-up capital, not less than national economic and development
15,000 pesos. authority (NEDA).
Meetings Voting System
The general assembly holds an annual meeting, with
the date set in the bylaws or within 90 days after the 1 vote for Primary Cooperatives
fiscal year ends. Notice of regular meetings must be
sent to all members. Special meetings can be called
1 basic vote for Second &
by the board or upon petition by 10% of members
Tertiary Cooperatives with
entitled to vote, with proper notice. If the board fails to
maximum of 5 incentive votes
call a meeting, the authority can order the petitioners
to do so. For newly approved cooperatives, a special
general assembly must be held within 90 days. The Voting by Proxy is applicable.
authority may call special meetings to report on
examinations or investigations, and notice can be
waived by any member.
Quorum
in General Assembly

In ordinary cooperatives, quorum is 25% of all voting

members. For electric cooperatives, it's 5%, unless
specified. In cooperative banks, quorum for regular
or special meetings is half plus one of all voting
shares; for amending articles or bylaws, it's 3/4 of
all voting members present.
 WHO CAN BE
MEMBERS OF
COOPERATIVES? REGULAR MEMBERS

is one who has complied with

all the membership
ASSOCIATE MEMBERS requirements and entitled to
all the rights and privileges of
A certificate of registration
has no right to vote and membership as stated in the
issued by the Authority under be voted upon and is Cooperative Code and the
its official seal is a conclusive entitled only to such rights cooperative by laws.
evidence that the cooperative and privileges provided by
is duly registered the cooperative's by laws.
 Composition & Term
The board of directors, comprising 5 to 15 members elected by
the general assembly for 2-year terms. They serve until
successors are elected, qualified, or removed for cause.

Meetings & Quorum Requirements

Regular meeting shall be held once a month. Special meetings,
with agenda specified in advance, can occur anytime with at least
one week's notice to members. Directors cannot attend or vote by
proxy at board meetings.
 PRIVILEGES OF COOPERATIVES
Cooperative registered under R.A. 9520 can enjoy the following privileges:

(1) Safekeeping Privilege-

(2) Space Utilization-
Cooperatives may deposit their
Government employee
sealed cash boxes, documents, or
valuable papers in municipal or city cooperatives, regardless of any
treasurers' safes and other conflicting laws or regulations,
government offices free of charge. have the right to freely use any
The custodian will issue a receipt, available space within their
witnessed by another person, agency with no cost, whether
acknowledging the received owned or rented by the
articles.
Government.
 PRIVILEGES OF COOPERATIVES
Cooperative registered under R.A. 9520 can enjoy the following privileges:

(3) Franchise for Special

Services- Cooperatives (4) Preferential Procurement-
providing specialized services Cooperative has the first right to
like electricity, transportation, supply government institutions and
etc., must obtain a franchise. agencies various commodities
produced by their members shall
They must also open membership
be granted to the cooperatives
to all eligible individuals in their
concerned;
operational areas.
 PRIVILEGES OF COOPERATIVES
Cooperative registered under R.A. 9520 can enjoy the following privileges:

(5) Preferential treatment in (6) Shipping Benefits-

the allocation of fertilizers Preferential access to shipping
allocation shall be granted bottomries of commercial shipping
to cooperatives by the vessels in connection with the
appropriate government shipment of the products of
agencies; cooperatives.
 PRIVILEGES OF COOPERATIVES
Cooperative registered under R.A. 9520 can enjoy the following privileges:

(7) Cooperatives and their federations, such as market vendor

cooperatives, shall have preferential rights in managing public markets
and/or lease of public market facilities, stall or spaces.

(8) Financial Assistance- Credit cooperatives and/or federations can access

loans, credit lines, rediscounting of their loan notes, and other financial services
from Development Bank of the Philippines, the Philippine National Bank, the Land
Bank of the Philippines and other financial institutions except the Central Bank of
the Philippines;
 PRIVILEGES OF COOPERATIVES
Cooperative registered under R.A. 9520 can enjoy the following privileges:

(9) Exemption from Pre-Qualifications Bidding- Cooperatives transacting

business with the Government of the Philippines or any of its political
subdivisions or any of its agencies or instrumentalities, including government-
owned and controlled corporations shall be exempt from pre-qualification
bidding requirements;

(10) Legal Representation- Cooperatives shall enjoy the privilege of being

represented by the provincial or city fiscal or the Office of the Solicitor General,
free of charge, except when the adverse party is the Republic of the Philippines.
 PRIVILEGES OF COOPERATIVES
Cooperative registered under R.A. 9520 can enjoy the following privileges:

(12) Cooperatives formed by faculty members and employees of

educational institutions shall have preferential rights in managing
canteens and related services within the institution premises.

(13) Housing Financing- The appropriate housing agencies and government

financial institutions shall create a special financing options for housing projects
undertaken by cooperatives, with interest rates and terms similar to socialized
housing projects. This financing shall be in the form of blanket loans to qualified
cooperatives, without need for individual processing.
ORGANIZATION OF PRIMARY COOPERATIVE

ORDINARY COOPERATIVE

15 or more natural persons with legal age who are Filipino citizens in
intended area may form primary cooperative, with PMES completion
requirement.
New primary cooperative can become multipurpose after meeting
Authority's minimum requirements.
Single-purpose cooperative can transform or create subsidiaries after
2 years of operations.
 ORGANIZATION OF PRIMARY COOPERATIVE

LIABILITY OF MEMBERS
A member's liability to the cooperative is limited to their share capital contribution.

REFUND OF INTERESTS

Any dues owed to a former member, as per bylaws, must be paid either by the
cooperative or the approved transferee.

VOTING REQUIREMENTS FOR REGISTRATION OF ELECTRIC COOPERATIVE

Registration with CDA requires 20% of all members' votes in good standing.

LIABILITY OF COOPERATIVES
A cooperatives under Phil. Cooperative Code of 2008 should have a limited liability.
 HOW TO ORGANIZE A
COOPERATIVE

Cooperative Code of the Philippines (RA 6938) has devised nine (9) steps
suggested in setting up a cooperative for the cooperative organizer and
members.
 Requirement: Minimum 15 members
Identify common problems and basic needs for
GET cooperative solutions
ORGANIZED Examples: production increase, marketing, credit
assistance, etc.
Establish a dedicated core group for organizational
tasks
Core group handles paperwork and initial setup
STEP 1 Form working committees like membership, finance,
executive, secretariat from the core group.
STEP 2 STEP 3 STEP 4
 RESERVED
Secure and fill up Cooperative Name
PROPOSED Reservation Request Form (CNRRF)
COOPERATIVE NAME Submit to CDA Central Office or any
Extension Office
Reservation fee required
STEP 2

STEP 3 STEP 4 STEP 5

 Economic Survey is a general statement
PREPARE A GENERAL describing, the structure and purposes of the
proposed cooperative.
STATEMENT / The organizational structure and actual staffing
ECONOMIC SURVEY pattern shall include a bookkeeper.
This should indicate the area of operation, the
size of membership and other pertinent data
in a format provided by the Authority.
STEP 3

STEP 4 STEP 5 STEP 6

 PREPARE THE
COOPERATIVE'S BY- The by-laws contain the rules and
regulations governing the operation of
LAWS
the cooperative

STEP 4

STEP 5 STEP 6 STEP 7

 Mandatory contents of the articles of cooperation are the following:
PREPARE THE (a) the name of the cooperative, which must include the word
ARTICLES OF "cooperative";

COOPERATION (b) the purpose and scope of business for which the cooperative is
to be registered;

(c) the term of existence of cooperative;

STEP 5 (d) the area of operation and the postal address of its principal
office;
STEP 6 STEP 7 STEP 8
 (e) the names, nationality and the postal addresses of the
PREPARE THE registrants;

ARTICLES OF (f) the common bond of membership;

COOPERATION (g) The list of names of the directors who shall manage the
cooperative; and

(h) Share capital amount; names and residences of

STEP 5 contributors; classification (primary, secondary, tertiary);
Organizers' signatures, acknowledged by notary public

STEP 6 STEP 7 STEP 8

SECURE BOND OF A surety bond should be secured from a duly
registered insurance or bonding company.
ACCOUNTABLE Every director, officer and employee
OFFICER(S) handling funds, securities or property on
behalf of the cooperative shall be covered
by this. The board of directors shall
determine the adequacy of such bonds.
STEP 6

STEP 7 STEP 8 STEP 9

 Sworn statement by treasurer
EXECUTE Confirms subscription of at least 25% of
TREASURERS authorized share capital
Confirms payment of at least 25% of total
AFFIDAVIT subscription
Attached to articles of cooperation

Paid-up share capital requirement

STEP 7 Minimum of Fifteen thousand pesos (P15,000.00)

STEP 8 STEP 9
 COMPLETE THE PRE- A prospective member of a primary
cooperative must have completed a Pre-
MEMBERSHIP Membership Education Seminar (PMES).
EDUCATION SEMINAR They may contact the Regional or Extension
Office which has jurisdiction over their
(PMES) proposed cooperative for technical
assistance.
STEP 8

STEP 9
 REGISTER THE Submit the following required documents:

COOPERATIVE WITH 1. Economic Survey;

2. Articles of Cooperation and By-Laws;
THE (CDA) 3. Surety bond of accountable officers;
4. Treasurer's Affidavit;
5. Approved Cooperative Name Reservation Slip;
STEP 9 6. Certificate of PMES;

Reference: Frequently asked Questions | CDA. (n.d.). https://cda.gov.ph/frequently-

asked-questions/?fbclid=IwAR11be1KQexw-uFpKs_SN-z1HdLOGJXWGtwhO6i_Bv-
jhdcPjcwKg_3AWlk
 SOURCES OF CAPITAL OF COOPERATIVES
Common share capital is issued solely to
Members regular members vote on a one-man-one-
vote basis and receive interest. Preferred
Share Capital
share capital issued to regular and
associate members, with issuance and
Capital from subsidies, donations,
legacies, grants, and other assistance Subsidies, limitations determined by the cooperative's
bylaws.
cannot be divided into individual share Donations, legacies,
capital holdings but instead forms part grants& assistance
of the cooperative's donated capital or
fund. Upon dissolution, this donated Revolving capital is made up of
capital might be given up to the Revolving delayed payments of patronage
Philippine government. funds or interest on share capital.
Capital

it includes deposits
Loans and
Borrowings
 it includes the limitations to maximum share on share Capital holdings, maximum limit of par value,
and maximum rate of interest on capital of a member of cooperatives.

No member, except the a "share" represents a Interest on share capital

cooperative itself, can own unit of capital in a cannot exceed the rate of
or hold over 10% of the primary cooperative. Its return on investment, unless
share capital. Members' par value, which is the specified in the cooperative's
leisure capital nominal or face value, bylaws.
contributions are can be set at any
considered equity, not to amount up to one Rate of Interest: X (Net Surplus
be withdrawn or used to thousand pesos (1,000). - Statutory Reserves )/Total
offset obligations while Average Share Month
membership is active.

Note: Approval from the BOD is required for interest allocation on share capital. Members are prohibited from
transferring their shares or interests in the cooperative.
NET SURPLUS
Close at the end of every fiscal year. Net surplus is not a profit
but an excess of the payments made by the members or any
excess in inflows. The net surplus distribution are to be
followed in order:

01 Reserve Fund: Minimum 10% of net surplus annually, not

distributable to members upon dissolution.

02 Education and Training Fund: Maximum 10% of net

surplus.

03 Community Development Fund: Minimum 3% of net

surplus.

04 Optional Fund: Up to 7% of net surplus.

Remaining surplus: Distributed to members as

05 interest on share capital, not exceeding the normal
rate of return. This must be allocated orderly:
Members with paid-up share capital.
Members with unpaid share capital.
Non-member patrons.
Subscribers with unpaid subscribed share capital.
ANNUAL AUDIT
Registered Cooperatives Shall be Subjected to
Annual Financial, Performance and Social Audit.
1. The financial audit shall be conducted by an
external auditor who satisfies all the following
qualifications:

a. He is independent of the cooperative or any of its

subsidiary that he is auditing;

b. 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.
2. The social audit shall be conducted by an
independent social auditor accredited by the
Authority.

3. Performance and social audit reports which

contain the findings and recommendations of the
auditor shall be submitted to the board of directors.

4. Audit Report. The auditor must provide the board

and audit committee with a financial audit report
adhering to accepted auditing standards for
cooperatives as jointly promulgated by the PICPA
and the Authority . Subsequently, the board presents
the full report to the general assembly at its next
meeting.
Reference: Handouts on Implementing Rules and Regulations of RA.9520
CPAR -Regulatory Framework for Business Transactions (RFBT 8607). Philippine Cooperative Code of 2008. The LawPhilProject. Retrieved from April 1, 2021 from
https://lawphil.net/statutes/repacts/ra2009/ra_9520_2009.html
AUDITOR’S RESPONSIBILITY -
EVENTS AFTER THE DATE OF THE REPORT

When, after the date of the report but before

the financial statements are issued, the
auditor should consider whether the financial
statements need amendment, should discuss
the matter with management and should
take the action appropriate in the
circumstances.
AUDITOR’S RESPONSIBILITY -
EVENTS AFTER THE ISSUANCE OF THE
FINANCIAL STATEMENTS
When, after the financial statements have
been issued. If the auditor discovers a
fact existing at the time of their report
that, if known then, could have led to
report changes, they should evaluate if
the financial statements need
adjustments, engage with management,
and act accordingly.
PERFORMANCE AUDIT
REPORT (PAR)
FOR COOPERATIVES
The Performance Audit Report (PAR) is
required by the Cooperative Development
Authority (CDA) to assess the governance,
management, and financial performance
of cooperatives.
This report helps ensure safe and sound
operations and transparency to
members.
ABOUT
PERFORMANCE
AUDIT REPORT
All registered cooperatives,
regardless of type or category.

Within 120 days after the end of each calendar year,

submitted electronically through the CDA online system.

Non-submission of PAR can result in penalties like fines and

potential loss of registration.
Fine of ₱100 per day of delay
Cooperative federations may be requested to assist the
CDA in validating PARs.
ABOUT

PERFORMANCE
AUDIT REPORT
Governance and Management Report (GMR):
Assesses actions taken by various cooperative entities (e.g., Board of
Directors).
Evaluate human resources, structure, and compliance with regulations.
Assesses member participation.
Financial Performance Standards (STEPS):
Uses ratios to assess stability, turnover, efficiency, profitability, and asset
structure.
Data sourced from audited financial statements and annual reports.
Summary Report:
Summarizes findings from GMR and STEPS sections.Identifies strengths,
weaknesses, and areas for improvement.
Includes a rating (excellent, very satisfactory, etc.) based on a weighted score.
Who Can Be An
Accredited Cooperative
External Auditor?
A Certified Public Accountant (CPA)
accredited by the CDA.
Can be an individual or a member of
an auditing firm/partnership.
 HOW TO APPLY FOR
INITIAL ACCREDITATION?

01 Submit required documents to the

CDA-EO (Extension Office) where
you are based.

02 Documents include: profile, valid

IDs, certificates, training
attendance proof, etc.

03 Pay the initial accreditation fee

(individual: ₱2,000, firm: ₱5,000)
 HOW TO RENEW ACCREDITATION?

01 Re-apply within 3 months before 04 Engage in at least one free audit

current accreditation expires. service for a micro-cooperative.

02 Submit updated documents and 05 Pay the renewal fee (individual:

fulfill additional requirements. ₱1,000, firm: ₱3,000)

03 Attend required training (24 hours

minimum, valid for 5 years)
KEY RESPONSIBILITIES OF
ACCREDITED AUDITORS

01 Conduct audits in accordance with

relevant standards (PFRF for
Cooperatives, PSAs, etc.)
04 Maintain working papers for at
02 Prepare and submit comprehensive least 7 years.
audit reports (including financial
statements, findings,
recommendations). 05 Uphold ethical conduct and avoid
conflicts of interest.
03 Disclose any adverse findings to
the CDA and the cooperative
promptly.
APPLICATION REQUIREMENTS FOR
INITIAL ACCREDITIATION
APPLICATION REQUIREMENTS FOR
INITIAL ACCREDITIATION

viii. Valid certificate of Membership in Good standing with

PICPA of the signing of the partners;
APPLICATION REQUIREMENTS FOR
RENEWAL OF ACCREDITIATION
APPLICATION REQUIREMENTS FOR
RENEWAL OF ACCREDITIATION
APPLICATION REQUIREMENTS FOR
RENEWAL OF ACCREDITIATION
TRAINING REQUIREMENTS
ACCREDITATION FEES
ACCREDITING BODY

The Accreditation of Cooperative External Auditor shall be

approved by the CDA Board of Adminstrationrs9 CDA-BOA) upon
recommendation of the CRITD/IDD of the CDA- CO through the
Executive Director.

AUDIT COVERAGE
CONDITIONS FOR ENGAGEMENT OF
AN EXTERNAL AUDITOR

I. Internal Audit Functions;

CONDITIONS FOR ENGAGEMENT OF
AN EXTERNAL AUDITOR
CONDITIONS FOR ENGAGEMENT OF
AN EXTERNAL AUDITOR
REPORT REQUIREMENTS
REPORT REQUIREMENTS
REPORT REQUIREMENTS
SIGNING OF AUDIT REPORT BY
AN AUDIT FIRM / PARTNERSHIP
UPDATING OF RECORDS
GROUNDS FOR NON APPROVAL OF
RENEWAL
REVOCATION / CANCELLATION OF
ACCREDITATION
REPEALING CLAUSE

EFFECTIVITY
GROUP MEMBERS:

Lyzza Angela Phoebe Calleja

Tomotorgo

Althia Ashley Crystal Mae

San Juan Abad
QUIZ
 1. WHICH OF THE FOLLOWING IS NOT AN OBJECTIVE
AND GOAL OF A COOPERATIVE?

a. Provide optimum social and economic benefits to its members

b. Teach them efficient ways of doing things in a cooperative
manner
c. Cooperate with the local government, other cooperatives, and
organizations to further the attainment of any of the foregoing
objectives.
d. Propagate cooperative practices and new ideas in business and
management
 2. IT UNDERTAKES JOINT PRODUCTION WHETHER AGRICULTURAL OR
INDUSTRIAL. IT IS FORMED AND OPERATED BY ITS MEMBERS TO
UNDERTAKE THE PRODUCTION AND PROCESSING OF RAW MATERIALS
OR GOODS PRODUCED BY ITS MEMBERS INTO FINISHED OR PROCESSED
PRODUCTS FOR SALE BY THE COOPERATIVE TO ITS MEMBERS AND NON-
MEMBERS.

a. Consumer Cooperative
b. Marketing Cooperative
c. Financial Service Cooperative
d. Producer Cooperative
 3. TRUE OR FALSE

Interest on a share capital can exceed the

rate of return on investment, unless the
permitted not to do so.
 4. TRUE OR FALSE

In ordinary cooperatives, quorum is 25% of all voting members.

For electric cooperatives, it's 5%, unless specified. In
cooperative banks, quorum for regular or special meetings is
half plus one of all voting shares; for amending articles or
bylaws, it's 3/4 of all voting members present.
 5. TRUE OR FALSE

Credit cooperatives and/or federations can access loans,

credit lines, rediscounting of their loan notes, and other
financial services from Development Bank of the Philippines,
the Philippine National Bank, the Land Bank of the Philippines
and other financial institutions except the Bangko Sentral ng
Pilipinas (BSP).
 6. TRUE OR FALSE

The “one-man-one-vote-basis” does not ensure democratic

participation and equal representation among cooperative
members, regardless of their financial contribution.
 7. TRUE OR FALSE

In the meeting of cooperative members, they are not allowed

to have a proxy wherein the Board of Directors are allowed to
have a proxy.
 8. TRUE OR FALSE

One of the key responsibilities of an accredited auditor is to

conduct audits in accordance with relevant standards such as
PFRF for Cooperatives and PSAs
 9. TRUE OR FALSE

The financial audit shall be conducted by an internal auditor

that is independent of the cooperative or any of its
subsidiary that he is auditing and is a member in good
standing of the Philippine Institute of Certified Public
Accountants (PICPA).
 10. TRUE OR FALSE

After the date of the report but before the financial

statements are issued, the auditor should consider whether the
financial statements need amendment, should discuss the
matter with management and should take the action
appropriate in the circumstances.
 IDENTIFICATION

11-15. Give atleast 5 Types of Cooperatives