Concept Of Internal Check
An internal check is a part of internal control. Internal check is the process of arrangement of duties of various staffs of a business in such way that work is automatically checked by the next staff while performing their duties. Frauds which are committed by a staff are automatically detected and corrected by the another staff. So, it helps a lot in the work of final audit. For example, a staff records the expenditure in a book and another staff posts them into ledger, another staff checks and verifies the ledger and payment is made by another staff. So, the work of one staff is checked by the another staff while performing their works so that errors and frauds committed by one staff are detected and prevented by the another staff.
Objectives Of Internal Check
Following are the objectives of internal check system:
1. To eliminate the frauds and errors which may be committed by the staffs.
2. To prevent misappropriation of cash or stock.
3. To ensure the reliability of information produced by the accounting system.
4. To detect errors and frauds promptly which helps to minimize their effects in long term.
5. To exercise moral pressure over the staffs.
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