FRAUD DETECTION AND CONTROL IN COOPERATIVE THRIFT AND CREDIT SOCIETIES A CASE STUDY OF SELECTED CREDIT COOPERATIVE IN AHIAZU MBAISE L.G.A IMO STATE

Abstract

Cooperative thrift and credit societies emerged as a result of people coming together, posting their resources in mutual effort in order to solve their problem. The focus of this study is to examine the way in which fraud can be detect and control in cooperative, thrift and credit societies in Ahaizu mbaise L.G.A Imo state. The research also stated the problems, objectives the area the research work covers and limitations of the study. The research make use of hypothesis in the research work some important words are explained.In chapter two, the study uncovers the strength and weaknesses common to the cooperatives, thrift and credit societies. The review of modern cooperative thrift and credit society’s movement were explained. The research work also explained the major uses of internal control system, its element and its purpose in cooperative thrift and credit societies. The research work helps the research to find out the major causes of fraud and how is committed in cooperative thrift and credit societies, and also its types. In this study, internal audit is also seen as another control system in CTCS. In this chapter an overview of NDIC report cooperative thrift and credit societies were also explained. This study also uncover how fraud can be control and prevent in cooperative thrift and credit societies for instance using some approaches such as a moiré professional approach. A strengthened management approach etc.In chapter three, data were collected data used were obtained from primary and second sources. The butted, direct interview and other available records while secondary were gotten from relevant textbooks, academic journals past research studies the society bye-laws, this chapter also explained the procedures used in processing data and test of hypothesis.In chapter four, the study also shown how the questionnaires were presented and analysis and interpreted. This data were collected from respondents from olumpam CTCS, progressive Owutu CTCS, and umumbiri Ndioma CTCS in Ahiazu Mbaise L.G.A Imo State. Finally, findings and conclusion were elaborated and reasonable recommendations aimed at solving the problems CTCS in Ahiazu Mbaise.

TABLE OF CONTENTS

  Title page

Certification                                                                ii

Dedication                                                                  iii

Acknowledgement                                                       iv

Abstract                                                                      v

CHAPTER ONE

1. Introduction                                                  1

1.1         General of the problem                                  1

1.2         Statement of the study                                  2

1.3         Objectives of the study                                  2

1.4         Research questions                                       3

1.5         Statement of hypothesis                                3

1.6         Significance of the study                                4

1.7         Scope of the study                                         5

1.8         Limitation of the study                            5

1.9         Definition of term                                   8

CHAPTER TWO

• Literature Review                                   9
  • Brief Historical thrift and credit society   10
  • Meaning of fraud detection and control in cooperative       12
  • The objective of cooperative thrift and credit society         13  

• Scope for attaining cooperative thrift and credit societies    14

• Concept of fraud detection and control in cooperative societies                                  15
  • Need for fraud detection and control in cooperative societies.                                 16
  • Function of fraud detection and

control in cooperative thrift and credit societies.                                           17

• Problem of fraud detection and control

in cooperative thrift and credit societies18

• Problem facing fraud detection and

control in cooperative thrift and credit

society                                                  19

• Solution of the problems                        20

CHAPTER THREE

• Research design and methodology          21
  • Research design                                    21
  • Population of the study                          22
  • Sample size determination                     23
  • Sources / method of data collection 24
  • Sample techniques                                25
  • Validity and reliability of measuring instrument                                             26
  • Method of data analysis                         26

CHAPTER FOUR

• Presentation and analysis of data           28
  • Introduction                                          28
  • Presentation of data                              28
  • Analysis of data                                     28
  • Test of hypothesis                                 29
  • Interpretation of Result                         29

CHAPTER FIVE

• Summary, finding, conclusion and recommendation                                       41
  • Introduction, summary of finding           41
  • Conclusion                                             43
  • Recommendation                            44

Reference                                              46

Appendix

Questionnaire

CHAPTER ONE

1. INTRODUCTION
   1. GENERAL OVERVIEW OF THE STUDY

There has been specific reference of cooperative thrift and credit society, and a case study of Imo State.

It is worthy note that the  case of fraud and foreign reported by Nigeria bank to  Nigeria deposit insurance cooperative (NDC) between 1991, cooperative society suffered most both in terms of the numbers of case as will as the amount involved. Only ten out of above 250 of these ten bank, eight were commercial bank, only two were cooperative thrift and credit society.

Curiously NDIC in only of its report (1990) wrote that cooperative thrift and credit society’s staff were mostly involved in the unwholesome act. Thus, its management of such cooperative society are to blame for not putting very prompt and adequate internal workshop, some and symposia has been mounted by various financial institution in Imo State to address the issue of fraud and its effect on the financial system in particular and the economy in general. Yet more case are regularly reported media almost on a daily basis.

My focus in the project is also on fraud types, cause, detection and how to control it.

The role of the regular authorities in controlling fraud in the financial system particularly in cooperative thrift and credit societies will also be considered.

1. STATEMENT OF THE PROBLEM

Despite of internal control mechanism put place by financial institution and effort to delect fraud and eliminate before and after its occurrence,  there are still incident of fraud in cooperative thrift and credit societies, bank and other financial institution and  this has become a major problem of those institution especially to cooperative thrift and credit societies. This problem of fraud affected the activities and operation of the cooperative thrift and credit societies.