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Internal Check is an integral function of the internal control system. It is an arrangement of duties of the staff members in such a way that the work performed by one person is automatically and independently Internal check by the other.
To ensure and produce adequate and reliable accounting information. To keep moral pressure over staff. To minimize the chances of errors and frauds and to detect them easily on early stage if it is committed.
To divide the work in such a way that no business transaction should be left unrecorded. To fix the responsibility of every clerk according to the division of work. Economy in operations and overall efficiency in system due to good Internal Check may result in more profits.
From the Auditors Point of View Due to efficient system of Internal Check, the statutory Auditor can avoid deep and detailed checking of transactions. He may rely on test checks, hence Internal Check provides convenience to Auditor.
Since the Balance Sheet and the Profit and the Loss account is prepared without wasting of time, hence quick preparation of final accounts is possible. If Internal Check system is not properly organized, there are chances of disorder in the working of business. There might be instances where the quality of the product and the work is compromised with by the staff members due to greater importance to faster results.
An Auditor cannot be relied on if he does not conduct tests with procedures of his own.Internal check system is a part of the internal control system of the business. This is also called Internal Block. Each trader wants that he should be able to control the internal activities of his business, in such a manner that he can get maximum profits and the.
chances of . Internal check definition is - an accounting procedure whereby routine entries for transactions are handled by more than one employee in such a manner that the work of one employee is automatically checked against the work of another for detection of errors and irregularities.
Internal check system is a control system of the business in which the work is divided by the organisation so that no employee can do all the accounting.
Internal check system is a control system of the business in which the work is divided by the organisation so that no employee can do all the accounting. Internal control, as defined in accounting and auditing, is a process for assuring of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies.
A broad concept, internal control involves everything that controls risks to an organization. Internal check is an arrangement of as duties allocated in such a way that the work of one clerk is automatically checked by another while internal audit is an independent review of operations and records undertaken by the staff specially appointed for the purpose.
Internal check is a preventive control mechanism implemented by management to ensure no errors occur in business processing or even if they occur, are timely detected to mitigate any further losses attributable to .