  We report the magnetization ($M$) and magnetoresistance (MR) results of
HoAl$_2$ single crystals oriented along $<100>$ and $<110>$ directions.
Although HoAl$_2$ has cubic Laves phase structure, a large anisotropy is
observed in $M$ and MR results below Curie temperature ($T_C$) at 31.5 K. A
satisfactory correlation between magnetic entropy change ($\Delta S_M$) and MR
could be established along $<110>$ direction and in $<100>$ direction except
for the temperature ($T$) region, around which spin reorientation takes place.
Large inverse magnetocaloric effect is observed at low-$T$ which is associated
with the spin reorientation process in $<100>$ direction. A theoretical model
based on Landau theory of phase transition can describe $T$-variation of
-$\Delta S_M$ for $T > T_C$.
