Internal Check vs Internal Audit
Similarities: Both Internal Check and Internal Audit are part of the whole system of internal control, as such both are complementary and go together.
Dissimilarities: There is a lot of difference b/w Internal Check and Internal Audit. Both differ from each other in the following respects:
1. Meaning: Internal Check is an arrangement of duties allocated in such a way that the work of one person is automatically checked by another.
Internal Audit is an independent appraisal of the operations and records of the company.
2. Object: The purpose of Internal Audit is to detect the errors and frauds which have already been committed.
The purpose of Internal Check is to prevent or minimize he possibilities of errors, frauds or irregularities.
3. Need for separate staff: for carrying out Internal Audit, a separate staff of employees is engaged for the purpose.
For internal check, no new appointment is made. It, in fact represents only the arrangement of duties of the staff in a particular way.
4. Nature of work: The work involved in the Internal Audit is just like that of a watch man. Internal auditor has to report, from time to time, to the management about the various in efficiencies and suggest improvements. It is also his duty to see that the internal check system does not become static.
Internal Check, on the other hand, represents a process under which the work goes on uninterruptedly and the checking too is more or less automatic.
5. Timing of work: Internal Audit starts when the accounting process of different transactions is finished.
Internal Check is an operation during the course of transaction.
6. Internal audit: It is a device for checking the work, whereas internal check is a device for doing the work.
7. In Internal Audit Errors and Frauds are detected after the completion of work, whereas in Internal Check the Errors and Frauds are discovered during the course of work.
8. Scope of work: The scope of Internal Check is very limited. The scope of Internal Audit is comparatively board.
9. Involvement: A large number of employees are needed for the implementation of Internal Check System.
Whereas, a much smaller number of persons are needed for implementing Internal Audit implementation.
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