Distinguish among Internal Check, Internal Audit, and Internal Control
An internal check is the splitting of work tasks so that one person is not accountable for every step in a transaction. The splitting of tasks allows for the confirmation of work by a second person, thereby reducing the risk of fraud. Auditor employed by individual companies, partnership, Govt., agencies, individual and other entities are called internal auditors. These auditors may review employee performance, compliance with company regulations and financial and accounting systems. Internal control is an efficient system of control is established by the management in the conduct of mousiness including internal cheek, internal audit, and other forms of control.
- Definition: Internal Check is an arrangement of staff duties of a business in such a way that work is automatically checked by the next staff while performing their duties.
- Relationship: Internal check is a part of internal control.
- Objective: Internal Check is a system or method introduced with defined instructions given to staff as to their sphere of work with a view to controlling and verification of their work and also maintenance of accurate records as the ultimate aim.
- Definition: An internal audit is conducted by the permanent staff of the office to detect weakness in system, procedures and for the improvement
- Relationship: Internal audit is an independent audit performance.
- Objective: It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
- Definition: A sufficient understanding of the internal control structure is to be obtained to plan the audit and to determine the nature, timing, and extent of tests to be performed.
- Relationship: Internal control is a part of the internal audit.
- Objective: It as a process affected by an organization’s structure, work and authority flow, people and management information systems, designed to help the organization accomplish specific goals or objective.