Author(s) :

Indar Kaur.

Volume :

Abstract :

The framework of internal audit was introduced into the co-operative sector with the enforcement of the Co-operative Societies Act (CSA) 1993 in January 1994, which clearly spelt out the functions and powers of the Internal Audit Committee ( IAC ). The objective of this research is to study the extent to which the lACs are functioning in compliance with provisions of the co-operative law as well as provide an insight into the IAC s level of knowledge of their functions, experience as IAC members, attendance of mandatory training and frequency of audit and audit reports. Three IAC members were randomly chosen as respondents from a sample of 274 co-operatives. Data was collected using a self administered questionnaire. Responses were received from 473 IAC members from 176 co-operatives, a response rate of 64.2%.The findings indicate one third of the IAC have yet to attend the mandatory course.Those who have attended this training have a significantly better knowledge of their functions. One third (33.3%) are not complying with the legal requirement to audit once in 3 months. A substantial number of IAC are not submitting audit reports in compliance with the law. It is also found that those who have attended mandatory training, have more than one years' experience as IAC or receive allowances tend to carry out significantly more frequent audits.

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