Internal check

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manish

manish (Querist)
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07 October 2013 what is internal check in audit

Ankur Garg

Ankur Garg (Expert)
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07 October 2013 Kindly check the link below for info regarding Internal check:

http://accountlearning.blogspot.in/2012/02/concept-and-objectives-of-internal.html

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Sanket

Sanket (Expert)
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08 October 2013 Internal check is best regarded as indicating
checks on the day-to-day transactions which
operate continuously as a part of the routine
systems whereby work of one person is proved
independently or is complementary to the work of
another, the object being the prevention of or
early detection of errors and frauds The
council of the Institute of chartered accountants
of England and Wales. The main objective of
internal check is prevention of errors and frauds
and/or detection of errors and frauds at the
earliest. Internal check is a continuous process
and is part of the day-to-day routine. It relates to
all the transactions that take place everyday.
Internal check is achieved by complementary
allocation of duties and by independent
verification of the work of one person by another.

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Sanket

Sanket (Expert)
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08 October 2013 Internal check is a part of internal control system.
It ensures that all financial transactions are
properly recorded. It also ensures efficiency of the
accounting system followed by the organization
and enables easy preparation of financial
statements. It achieves its main object of
minimizing errors and frauds. A sound system of
internal check increases the reliability of financial
statements. Internal check discourages fraud and
collusion among employees by instilling a fear of
detection in their minds. Internal check assigns
responsibilities to persons and enables
maintenance of records and documents properly
and thereby ensures smooth flow of work.

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