Excerpts from the report Foreword: The quality of audit reports of agricultural cooperatives has been improving consistently during the last ten years. This improvement is due mainly to the critical reviews of these reports by the various financial institutions extending agricultural credit - particularly the banks for cooperatives which, since their inception, have been most insistent that their clients engage properly qualified auditors (certified when possible). The criticisms and suggestions, in the main, have been welcomed by professional accountants. It has been recognized by all concerned that there is room for much research to develop standardization and uniformity in this specialized field. Those people interested in agricultural cooperatives often are at a loss for a guide by which to judge the quality of their audit reports. This article, therefore, is designed primarily for the use of directors and managers, but it also should be of assistance to professional accountants who audit cooperatives.