THE ROLE OF INTERNAL CONTROL IN PREVENTING FRAUD AND ACCOUNTING ERRORS IN AGRICULTURAL CREDIT COOPERATIVES: THE CASE OF KÜTAHYA REGIONAL UNION

Agricultural Credit Cooperatives (TKK) is a non-profit organization. They provide economic support in kind and cash to the activities of producers in the agricultural sector. Aiming to benefit both the society and its partners, TKKs have the responsibility to be accountable to the society and their members. The main risks faced by businesses are those arising from accounting errors and frauds. Risks arising from accounting errors and frauds can shorten the lifespan of businesses in the medium and long term, as they prevent the effective use of businesses' assets and resources. It is a known fact that the effective internal control system plays a role in eliminating these risks arising from the accounting system. It is important to determine the role of the internal control system, which was created to protect the interests of the cooperative partners and to make the activities of the cooperative more effective, in preventing errors and frauds in the accounting system that helps accountability. . The aim of this study is to reveal the role of the internal control system in TKK in preventing accounting errors and frauds through qualitative research method. In this context, in the first part of the research, the history, organizational structure, working subjects and audit processes of Agricultural Credit Cooperatives were discussed. In the second part, accounting errors and frauds, detection and prevention of accounting frauds, and tools used to prevent accounting errors and frauds are discussed. In the last part of the study, the method, findings and results of the research conducted to determine the role of the internal control system in preventing accounting errors and frauds in the cooperatives affiliated to the Turkish Agricultural Credit Cooperatives Kütahya Regional Union are included. According to the results obtained from the research, it has been determined that the internal control system in the Turkish Agricultural Credit Cooperative Kütahya Regional Union is effective in preventing accounting errors and frauds and contributes to the protection of the interests of the cooperative partners.