A NEW APPROACH ON THE NEED TO RESTRUCTURE THE PLACE AND AUDIT OF COOPERATIVES IN THE STRUCTURE OF PUBLIC ADMINISTRATION IN TURKEY

Abstract

Cooperative legal entities, established on a voluntary basis in order to meet the needs of people on the basis of mutual aid and solidarity and at the lowest cost, undertake a very important mission in social life. Whether the cooperatives are protected against some irregularities during their activities and whether they act in accordance with the legal legislation can only be determined as a result of the internal controls carried out by the general assembly, the board of directors, the auditors and the partners. However, in order to carry out the said controls effectively and in accordance with the current conditions, the structure of the cooperative supervisory board is of great importance. It is also effective if external audit work is carried out together with internal audit. In this context, the basic and additional financial statements of the cooperative legal entity, which is subject to external audit, form the basis for business/investment loans to be used by banks and financial institutions. In addition, cooperatives in Turkey operate under the duties and responsibilities of more than one ministries in public administration. This situation causes some problems in the managerial and supervisory functions of cooperatives. In the article, the internal/external audit process in cooperatives has been examined in terms of its functioning and its structure in the public administration within the scope of the latest legal changes, and suggestions for the solution of the negative aspects of the system and analyzes for a more effective function of management and audit are given.