What are the aims and objectives of internal check in auditing
The term internal check means a system under which the work connecting with carrying out and recording of transactions is allocated among the various members of the staff so that errors and frauds either prevent altogether or if committed are rendered capable of early detection by automatic operation of the system, unless all the clerks join hands in defrauding their employees.
Internal audit is continuous review of the operation and records of business by special staff called internal auditor. The scope and object of internal audit may vary extended to many matters which are not directly of an accounting nature. Internal audit is therefore part of the whole system of internal control but is not an integral part of internal check or the accounting system.
Main purposes of internal audit are effectively internal check and accounting system, proper authority for transactions, diction of errors and frauds, prevention of errors and frauds and expedite the annual audit. Internal audit assures the management that the internal check and the accounting system are effectively in design and operation. It ascertains that there has been proper authority for transactions of the business. Internal audit detect the errors and frauds. Internal audit eliminates the possibilities of errors and frauds. Internal audit also prevents the possibilities of errors and frauds. Internal audit facilitates and expedites the annual audit conducted by an independent auditor.
Circumstances under which internal check is used.