Explain social audit and performance audit.
Social audit is the evaluation of a cooperative’s procedures with respect to its social and ethical impact
to the community. It includes the process of reviewing the cooperative’s developments plans and
budget, and assessing its intended and unintended social outcomes as compared to its mission, vision,
goals, and code of social responsibility.
Performance audit, on the contrary, evaluates a cooperative’s overall efficiency and effectiveness. Its
purpose is to identify weak areas in the cooperative’s governance and management, and provide
developmental intervention.
Discuss the advantages of Cooperative.
The following are some of the advantages of Cooperative:
Voluntary organization. Open membership is maintained by cooperatives, making it open to all person
with common interest and are willing to bear responsibilities in conformance with the cooperative’s
vision and mission.
Ease of formation. A minimum of 15 members can form a cooperative. Also, cooperative has no limit as
to the number of members unlike a corporation. The procedures and requirements for registration are
