Internal Control and Performance of Selected Thrift and Credit Cooperative Societies in Nigeria

Abstract

The study empirically examined the impact of internal control on perforamcne of selected thrift and credit cooperative soceities in Nigeria. A study of Cross River State. The specific objectives were to: examine the impact of internal audit on performance of thrift and credit cooperatives, ascertain the impact of control activities on performance of thrift and credit cooperatives, determine the impact of communication and information on performance of thrift and credit cooperatives, find out the impact of monitoring activities on performance of thrift and credit cooperatives. This study made use of an ex-post facto research design. The population consists of forty (40) thrift and credit cooperatives in Cross River State. The study employed multiple regression analysis to measure the degree of relationship between variables tested in the study. Based on the analysis, the following findings were made; Internal audit had a significant impact on the performance of selected thrift and credit cooperatives; Control activities had a significant impact on the performance of selected thrift and credit cooperatives; Communication/information had a significant impact on the performance of selected thrift and credit cooperatives. And monitoring activities had a significant impact on the performance of selected thrift and credit cooperatives. The study recommended that emphasis should be placed on the control of presenting pay slip evidence before loan application is considered to ensure that members do not take loans that cannot be effectively repaid within the stipulated period. The Cooperative societies should have specific guidelines on the implementation of necessary internal controls on granting and repayment of loans.