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
COVER PAGE I
TITLE PAGE II
APPROVAL PAGE III
DEDICATION IV
ACKNOWLEDGEMENT V
ABSTRACT VI
TABLE OF CONTENTS VII
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.
a.
Public: This study will enable the public appreciate the
duties and capabilities of the auditors.
b.
Accounting firms: Auditors help in dictation of errors in
the accounting firms. Such as error of commission, omission, principle and
compensation.
c.
Professional Accountancy Bodies:
d.
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.
1.5 DEFINITION OF
TERMS
A
co-operative : it is a union made up of a group of people and an enterprise. It
is made up of a group of people with common goal, who run an enterprise in
order to achieve their aim and objective.
i.
frauds involving the manipulation of the records and the
accounts, usually by the company’s senior officers with a view to benefiting in
some way from the false picture which they convey (e.g obtaining finance under
false preferences) or concealing a material worsening the company’s true
position.
ii.
Frauds, usually by employees, involving theft,
misappropriation or embezzlement of the company’s funds, usually in the form of
cash, or of it other assets.
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