20 BULLETIN 178, IT. S. DEPARTMENT OF AGRICULTURE. 
ough audit of the year's business before the annual meeting. Should 
the expense of a public accountant be prohibitive owing to the small 
amount of business transacted, a person who is thoroughly com- 
petent to carry on an audit should be employed, preferably some 
business man of high standing in the community who is not in- 
terested financially or otherwise in the organization. 
AUDITING CIRCLES. 
In the grain and dairying sections there are great numbers of 
cooperative elevators and cooperative creameries within a radius 
of a few miles. If each of these organizations were to employ an 
expert accountant to audit the books the cost would probably be 
excessive. Small associations or circles could be formed, however, 
by the cooperative organizations within a certain radius, who could 
enter into a contract with a competent auditor to do the auditing 
for all of the organizations. Such an arrangement would bring the 
services of an expert auditor to the organizations at a comparatively 
small cost. 
CONCLUSION. 
It is not unusual to read in a report concerning the failure or sus- 
pension of a business concern, that not until experts have been at 
work upon the accounting records for several days or weeks can the 
exact condition of the assets and liabilities be ascertained, or the 
amount of loss be discovered. The frequency with which this state- 
ment is made naturally suggests a connection between accounting 
and success. This connection will be found, on examination, to be 
existent in a large proportion of all business failures. 
The accounting problems connected with the cooperative organiza- 
tions in the United States generally do not receive the attention they 
deserve. The accounting system of any organization has a far- 
reaching effect upon the success or failure of the enterprise and upon 
the rights of the members interested therein. It is therefore neces- 
sary for the greatest success that the accounting system of any busi- 
ness enterprise be based upon the proper fundamental principles and 
conducted with the maximum degree of efficiency. 
SUMMARY. 
1. For the successful conduct of a cooperative business enterprise 
a complete business system is essential. Accounting records form a 
most important part of any business system. 
2. A business system may be defined as a prearranged plan of 
operation governed by the general laws of business practice. 
