Q.In co-operative audit, the audit class awarded to the best-performing, very well managed society is:

After auditing a society, the co-operative auditor gives it an overall grade for how well it is run.

The grades run from 'A' (excellent) down to 'D' (poor), so the top grade for a very well managed society is 'A'.

A distinctive feature of co-operative audit is that the auditor awards the society an audit class summing up its overall performance — finances, management, loan recovery, records and compliance. The four classes run from best to worst.

Option-by-option analysis:

• (a) Class 'A' — Correct. 'A' is the top grade, given to an excellent, very well managed society with sound finances, good recovery and well-kept records.
• (b) Class 'B' — Wrong. 'B' means good/satisfactory, with only minor defects — not the best.
• (c) Class 'C' — Wrong. 'C' means fair or average, with noticeable weaknesses.
• (d) Class 'D' — Wrong. 'D' is the lowest grade, given to a poorly managed society.

Remember the grades run A (best) to D (worst), like a report card. A common slip is to think 'D' is a distinction grade — it is the poorest grade.