Internal check

Internal Audit 614 views 5 replies
What is internal check and internal auditing
Replies (5)

In one sentence............Checking the efficiency of your own business process to help and attain your goals & objectives as been set.

Internal checks are controls within an organisation whereby a task done by a person is checked by another person, thereby reducing possibility to commit fraud or errors. Internal audit is audit carried out either by inhouse audit team or independent audit firm as per determined scope of areas to be covered. Internal auditor report to the management of a company unlike statutory auditors who report to the shareholders.

Practically speaking internal checks are the procedure through which one employee automatically verifies work of other employee in his regular duties. On the contraray internal control can be define as the activity designed by the entitiy specifically for the checking of other employyes work.

Audit: Verifying the Correctness to find out all kind of deviations in the defined format. 

Internal Check: This can be referred as system adopted to exercise check on the work done by subordinates by the immediate superiors onwards to verify and endorse the correctness of policies/transactions/regulations required so that the work should --not-- deviate from its objective.

Internal Control: Represents regulations exercised by the management on the practices and procedures to be followed at the implementation stage on the practices to maintained to restrict violations from rules and a check on the inappropriate activities.

Internal Audit :

An ongoing appraisal of the financial health of a company's operations by its own employees. Employees who carry out this function are called internal auditors. During an internal audit, internal auditors will evaluate and monitor a company's risk management, reporting, and control practices and make suggestions for improvement. Internal auditing covers not only anorganization's finance function, but all the operations and systems in a firm. While internal auditors are typically accountants, this activity can also be carried out by other professionals who are well-versed with a company's functions and the relevant regulatory requirements.

 

i describe them in this way... they are a necessary but unpopular group in any organization haha


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