Audit procedure

(1) The management board of the cooperative must permit the auditor to inspect the books and papers of the cooperative and to examine the cash holdings and the holdings of securities and goods; it must give the auditor all clarifications and evidence required for a careful audit. This also applies where it concerns the carrying out of an extraordinary audit ordered by the association.
(2) The association must give the chairperson of the supervisory board of the cooperative timely notice of the commencement of the audit. The chairperson of the supervisory board must inform the other members of the supervisory board of the commencement of the audit without delay and involve them in the audit on their demand or on the demand of the auditor.
(3) The auditor should inform the chairperson of the supervisory board without delay of important findings on the basis of which immediate measures by the supervisory board appear necessary to the auditor.
(4) In direct connection with the audit, the auditor should report orally, in a joint meeting of the management board and the supervisory board of the cooperative, on the probable outcome of the audit. For this purpose the auditor may demand that the management board or the chairperson of the supervisory board invite to such a meeting; where this demand is not complied with, the auditor may himself or herself convene the management board and the supervisory board, stating the facts of the matter.
(5) Where a cooperative is an undertaking of public interest within the meaning of section 316a, second sentence, no. 1 or 2 of the Commercial Code, the auditor must take part in a joint meeting of the management board and the supervisory board of the cooperative on the probable outcome of the audit, and report on the material findings of the audit, in particular on material weaknesses of the internal control and risk management system relating to the accounting process. The auditor informs about circumstances giving rise to concern of the auditor's bias, and about services rendered in addition to the audit services.
(6) Where no supervisory board is to be formed under the statutes, the rights and duties of the chairperson of the supervisory board under subsections (2) to (4) are exercised by an authorised representative elected by the general meeting from its midst.