(1) He is independent of the cooperative being audited and of any subsidiary of the
cooperative; and
(2) He is a member of any recognized professional accounting or cooperative auditor's association with similar qualifications.

Section 82. Audit Report. The auditor shall submit to the audit committee a report of the audit
which shall contain a statement of the assets and liabilities of the cooperative, including earnings
and expenses, amount of net surplus as well as lossess and bad debts, if any.

The audit committee shall forthwith furnish the board of directors a copy of the audit
report. Thereafter, the board of directors shall present the complete audit report to the general
assembly in its next meeting.

Section 83. Non-liability for Defamation. An auditor is not liable to any person in an action for
defamation based on any act done, or any statement made by him in good faith in connection with
any matter he is authorized or required to do pursuant to this Code.

Section 84. Right to Examine. A member shall have the right to examine the records required to
be kept by the cooperative under Section 51 of this Code during reasonable hours on business
days and he may demand, in writing, for a copy of excerpts from said records without charges
except the cost of reproduction.

Any officer of the cooperative who shall refuse to allow any member of the cooperative
to examine and copy excerpts from its records shall be liable to such member for damages and
shall be guilty of an offense which shall be punishable under Section 106 of this Code: Provided,
That if such refusal is pursuant to a resolution or order of the board of directors, the liability
under this article shall be imposed upon the directors who voted for such refusal: Provided
further, That it shall be a defense to any action under this section that the member demanding to
examine and copy excerpts from the cooperative records has improperly used any information
secured through any prior examination of the records of such cooperative or was not acting in
good faith or for a legitimate purpose in making his demand.

Section 85. Safety of Records. Every cooperative shall, at its principal office, keep and carefully
preserve the records required by this Code to be prepared and maintained. It shall take all
necessary precaution to prevent its loss, destruction or falsification.

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