Internal check and its objectives

Internal Check and its Objectives

Meaning: It is an arrangement of duties of members of staff in such a manner than the work performed by one person is automatically and independently checked by the others.

According to ‘F.R.M.De PAULA’, “Internal check means practically a continuous internal audit carried on by the staff it self, by means of which the work of each individual is independently checked by other members of the staff.”

According to ‘D.R. DAVAR,’ “Internal check is a system or method introduced with defined instructions given to staff as to their sphere of work with a view to control and verification of their work and also maintenance of accurate records as the ultimate aim.”

Objectives of Internal Check

1. To exercise moral pressure over staff.

2. To ensure that the accounting system produces reliable and adequate information.

3. To provide protection to the resources of the business against fraud, carelessness and inefficiency.

4. To distribute the work in such a business transaction is left unrecorded.

5. To allocate duties and responsibilities of each clerk in such a way that he may be held responsible for particular fraud or error.

6. To minimize the chances of errors, frauds or irregularities in the business based on the principle of division of labour.

7. To detect errors and frauds easily if it is committed, because in an efficient internal check system, there is

based on the principle of division of labour.

8. To detect errors and frauds easily if it is committed, because in an efficient internal check system, there is a provision for independent checking.

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