CO- OPERATIVE AUDIT AND CONTROL

CO- OPERATIVE AUDIT AND CONTROL

 

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ABSTRACT

Co –operative Audit and Control has been known to be basic  in Country’s economic growth.

In this respect, little or no attention is been given to this venture, Co –operative Audit and Control.

For a country to achieve its desired economic growth development and equipment allocation of revenue, its annual auditing is very necessary .moreover, once our respective co –operative society is well audited in a free and fair manner, frequent and inflation of assets would de detected.

But, the lack and inadequacy of this very concept has given a country a misconception in its dealing with the existing co –operative societies.

Finally, this research work would go a long way to reduce this said predicament by giving an insight into the necessary values and importance attached to it.  Thus, to audit our respective co operative societies, such problems would be definitely eliminated.

 

 

TABLE OF CONTENTS

 

CHAPTER ONE

1.0            CO –OPERATIVE ORGANISATIONAL AUDIT AND CONTROL                                                                                      1

1.1            INTRODUCTION                                                                   1

1.2            THE PROBLEM OF AUDITING AND CONTROL     3

1.3            PURPOSE OF THE STUDY                                         7

1.4            SIGNIFICANCE OF THE STUDY                               7

1.5            DEFINITION OF TERMS                                             8

CHAPTER TWO

2.0            IMPORTANCE AND VALUES OF CO-OPERATIVE AUDIT

2.1     MEANING OF CO-OPERATIVE AUDIT                    10

2.2            DETECTION OF ERRORS                                          11

2.3            DETECTION OF FRAUDULENT ACT                       13

2.4            EXTENT AND CONSEQUENCES OF NON               17 ORGANISATIONAL AUDIT

2.5            ECONOMIC PREDICAMENT                                               17

2.6            LACK OF JOB OPPORTUNITIES                               19

CHAPTER THREE

3.0            SUMMARY OF FINDINGS, RECOMMENDATION AND CONCLUSION

3.1     SUMMARY OF FINDINGS                                         23

3.2            RECOMMENDATION                                                 23

3.3            CONCLUSION                                                              24

SELECTED BIBLIOGRAPHY                                               25

 

 

CHAPTER ONE

1.0      CO-OPERATIVE ORGANISATION AUDIT AND CONTROL

1.1   INTRODUCTION

A Co-operative is a union made up of a group of people and an enterprise. It is made up of a group of people with common goals, who run an enterprise in order to achieve their aim objective.  There is no co-operative without a group of persons and an enterprise through which they achieve their aims.

The enterprise of a co-operative is only a way through which the group of member achieve their aims. It is an instrument of achieving the socio economic goals of the members. A co-operative has two demands, that means that is  made up of both a group of individuals and enterprise.

The co-operative is a sociological group which possess common interest, goals, aims and objectives for all members of the group. The group of persons making up the co-operative is on a long –term basis. It is relatively permanent and of temporary or on idle basis. These are different roles to be played within the content of the group which must be mutual in the sense that they complement each other.

 

There may be individualistic or collective role.  This means that these are some roles which individuals are expected to play while these are others which should be carried on by the group. Example of group role is election at the group. Example of group role is election at this general meeting. These will be common values within the group.  These means that certain action of behaviors will be regarded as positive of negative within the group.  There must be some common understanding about what actions and reactions that are acceptable or not acceptable.  This is a way of translating its bye –law into norms which are based on common values and acceptable to all.  These norms could represent the standard norms which stipulate the way of carrying out individual and collective roles.

 

For a group to exist in the long term, these must be a two way communication:  between the individuals to know the rules of changes in the affairs of the group.  If these is no communication, the group will reek down.

 

Every group should have a structure through which it functions which lead to the formation of a hierarchy. A group in which everybody is equal will not work. Some people must be higher while others will be lower than others. For instance, there will be the president, secretary, members of management committee etc.  the group must also be identifiable.  That is, it must have some characteristics which will make it easy for it to be identified within of outside the group. Each of these points will help in achieving the goals of the group.

 

 

1.2   THE PROBLEM OF AUDITING AND CONTROL

The problems of co-operative organization and control could be traced to many factors.

In the first place, to audit a co-operative organization the members should know actually through education the values and benefits derived from it. Illiteracy among the members is a big backwardness facing the organisation.  The great importance of co-operative education cannot be  over emphasized a medical practitioner, Doctor William King, in his words said that there is a great importance attached to co-operative expert, Mr. Stemera said that “we are giving a choice between two alternative, that is co-operative with a large amount of capital and no education, and a co-operative society with a small amount of capital but with knowledgeable members, our experience inclines us to choose the letter.

 

The more co-operative education the member possess the easier it will be for the inspector to guide and assist them. Co-operative society with ignorant members in a very heavy burden on the inspection and the item devoted to its supervision is not achieved. Co-operative education is not the study of physics sciences like physics of politics. It simply means knowledge of the meaning objectives and running of the co-operative society, the duties of the members and the committee the knowledge of the society’s bye – law and the relevant sections of the co-operative law.

 

The education can be imported in a formal or informal way. Members can arrange a study of the co-operative laws. This method is formal. It will be a good thing if any time the inspector attends a co-operative society’s meeting, he spends about fifteen minutes teaching the members certain sections of their bye –laws. Informally, the co-operative inspector discusses matters with the members or answers their questions.

 

Moreover, it is essential that every members of the co-operative society should receive co-operative education. They are expected to know what the objective of the organisation are. A member should be thought his duties and responsibilities to his society, as well as his rights and privileges arising therefore.  He is expected to know also certain provisions of the co –operative law and society law.

Profit is shared among themselves.  The same problem is applicable to producer co-operative society. They needed capital for the purpose of high cultural production for the purpose of economics of large scale production.  But, where such money is not within their reach, that very objective could not be implemented.

Finally, the most capital problem being encountered by co-operative society is the money for employing auditors to audit their annual account. If this should be the case, then, actually the society is facing a big economic and financial predicament.

For instance, where the co-operative society fails to audit its annual account, the financial position of this organisation could not be defected. It could lead to a lot of problems.

First liquidation, fraudulent act and poor planning. It will stop to enjoy economic of large scale investment.  Fraudulent act and other necessary inflation of the organization as assets would be in practise. This problem of auditing the organisation should be strictly checked and eradicated so as to achieve a better for the society’s

 

1.3   PURPOSE OF THE STUDY   

It helps a nation or country to achieve its desired economic growth, development and equipment allocation of revenue. Its annual auditing is very necessary. Moreover, once our respective co-operative society is well audited in a free and fair manner, fraudulent and inflation of assets would be defected.

 

1.4   SIGNIFICANCE OF THE STUDY

The main beneficiaries of this study are the public, the accountancy firms, professional accounting bodies and government.

  1. Public: This study will enable the public appreciate the duties and capabilities of the auditors.
  2. Accounting firms: Auditors help in dictation of errors in the accounting firms. Such as error of commission, omission, principle and compensation.
  3. Professional Accountancy Bodies:
  4. Government:  This study may show the necessity for government to review certain laws there hinder auditors from performing their role in ensuring survival and growth of such firms and make new law are necessary.  Besides, government will benefit from survival of such enterprises as it will derive income through taxes and job opportunities will be created.

 

 

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