Objectives of Internal Check

Objectives of Internal Check

An internal check is the process of arrangement of duties of various staffs of a business in such a way that work is automatically checked by the next staff while performing their duties. It is an arrangement of duties of members of staff in such a manner than the work performed by one person is automatically and independently checked by the others.

Objectives of Internal Check

Following are the objectives of internal check system:

  • The purpose of the internal check is to frauds.

To protect the business from carelessness, inefficiency, and fraud. The management can achieve this objective through the distribution of duties. So, eliminate the frauds and errors which may be committed by the staffs. In this way, many hands complete the work.

  • The purpose of the internal check is to protect the assets.

To prevent misappropriation of cash or stock. The management can take steps to safeguard the resources, to ensure and produce adequate and reliable accounting information. One person maintains the record and the custody are given to another officer. Top-level management makes the purchase and disposal. The periodical inspection of resources is necessary to avoid misuse of the resource.

  • The purpose of the internal check is to prevent errors.

To detect errors and frauds promptly which helps to minimize their effects in the long term. The management can devise such a system of internal that mistakes are prevented altogether. To minimize the chances of errors and frauds and to detect them easily on early stage if it is committed. If there is negligence on the pan of one employee, it is pointed out by another employee who can check the person of the first person.

  • The purpose of the internal check is to fix the responsibility of employees.

To ensure the reliability of information produced by the accounting system. The division of duties helps the management to locate inefficient employees.’ management should keep moral pressure over staff. The pending work provides chances of errors and frauds. To fix the responsibility of every clerk according to the division of work.

  • The purpose of the internal check is to devise a proper accounting system.

To divide the work in such a way that no business transaction should be left unrecorded. It consists of personnel, procedure, records, form and used by an organization in developing and communicating accounting information. The management can replace employees who are negligent in their duties.


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