Can Anyone Explain Advantages Of Internal Check?

The benefit of internal check is that it provides a written record. The signatures or initials of responsible persons show that vouchers have been examined. The signatures are written proof of work done. The merit of internal check is that liability of employees is determined. The whole work is distributed among company employees. They feel their duty to complete their work. The liability is imposed on the employees if they fail to meet the requirements of their jobs.

Internal check is helpful to prevent frauds. The work done by one person is checked by another. There is no chance of fraud as the time is short. The vouchers are prepared and approved on the same day. Internal check is helpful to prevent errors. The entries are made and verified by two or more persons. If one person fails to write the correct account it is pointed out by another person.

There is no hurry on the part of any person as the work is evenly distributed. There is little or no chance of errors or mistake due to internal check. The benefit of internal check is that test checking can be applied. Instead of checking all the entries only a part of these will be examined. The rest of the items will be treated as checked. The work load of the auditor is reduced. This technique can save time and energy of independent auditors.