Cooperatives are obliged to hire an audit, as dictated by the article No. 112 of Law No. 5.764, of December 16, 1971, which defines the National Cooperativism Policy, institutes the legal regime for cooperative societies, and makes other provisions. Therefore, ensuring an annual audit of the cooperative's financial records serves to certify that the values presented correspond to reality, they need to be validated by a company that performs cooperative audit.
Management is responsible for safeguarding, auditing and evaluating the cooperative's financial resources. THE cooperative audit it is a fundamental part of the manager's responsibility, and the cost of the audit should be considered a normal business expense. If management is negligent in establishing and monitoring the operations of their cooperative, directors can be held accountable.
Accounting methods must be accurate and consistent. One cooperative audit will identify deficiencies in accuracy and consistency, as procedures without consistency are no longer reliable for analysis and decision-making purposes. It is also necessary to ensure that the disclosure is complete. In many cases, what is not reported is often more important than what is reported. A cooperative audit will help ensure that full disclosure of the financial well-being of the business has been carried out.
Another reason why a cooperative audit What is needed are lenders and suppliers, who may require an audit before credit is granted and require an ongoing audit as part of loan agreements.
TATICCA – ALLINIAL GLOBAL performs audits and issues reports on the financial statements and other reports of third sector entities, including cooperative auditing, in compliance with the guidelines of the Federal Accounting Council – CFC and the entities themselves. Get in touch to learn more about the practical aspects of cooperative auditing.
Get in touch with TATICCA – ALLINIAL GLOBAL, which works with integrated auditing services, internal audit, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training, for more information, visit www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has certified methodologies for carrying out activities.