Difference Between Internal Audit and Internal Check | Auditing Important Topics

Difference Between Internal Audit and Internal Check
Auditing & Assurance

Difference between

In this article, we will Differentiate Between Accounting and Auditing 

Internal Audit

Internal auditing may be defined as a service to the management regarding independent evaluation of various activities of organization. More clearly, internal auditing is an independent appraisal activity within an organization for the review of operations as a service to the management.

Internal audit is a regular activity performed by the employees of the organization, to ensure correctness of accounting data and to detect fraud by way of periodical review of organization system, procedures and policies. Internal audit is systematic and continuous process of examining and reporting the operations and records of a firm by its employees.

Internal Check

The term internal check implies that the work of various members of the staff is allocated in such a way that the work done by one person is automatically checked by another. It is defined as “such an arrangement of book keeping routine where in errors and frauds are likely to be prevented or discovered by the very occupation of book keeping itself’.

Internal check is a system under which accounting methods and details of an establishment are laid out that the accounts and procedures are not under the absolute and independent control of any one person or the contrary the work of one employee is complementary to that of another. The system of IC is based upon the principle of division of labour; where in performance of each individual is automatically checked by another. This is possible by properly allocation the work and integration of function of the employees in such a manner their work complements each other.

Difference between Internal Audit and Internal Check

1. Meaning: Internal check is the organization of staff for checking the work of one by the other.  Internal audit is continues audit of accounts by employees of the business concern.

2. Object: Internal check aims to prevent errors and frauds.  Internal audit aims to detect errors and frauds.  Internal audit aims to detect errors and frauds.

3. Nature: In the case of internal check, recording and checking of entries is simultaneously done.  In the case of internal audit, only checking of already recorded entries is done.

4. Scope: The scope of internal check is limited.  The scope of internal audit is comparatively broad.

5. Appointment: In the case of internal check, no new member is employed as duties are so assigned that involved cross checking.  In the case of internal audit, process of auditing is carried by special staff appointed for this purpose.

6. Detection: In the case of Internal Check, any error or fraud is detected at the time of inter checking.  In the case of internal audit, any error or fraud is only detected at the end of audit work.