1.

Is a method of organising the accounting system of a business concern or a factory by which the duties of various clerks are arranged in such a way that the work of one person is automatically checked by another.a) Internal control b) Internal check c) Internal audit d) All of the above​

Answer»

INTERNAL check is a method of organising the ACCOUNTING system of a business concern or a factory by which the duties of various clerks are arranged in such a way that the work of one person is automatically checked by another.

Option (b)

More Information:

Characteristics of Internal check:-

  • Provision of Check
  • Self-balancing System
  • Job Rotation
  • Division of Work

Advantages of Internal check:-

  • INCREASE in Efficiency
  • Auditing Made Easy
  • Test CHECKING Possible
  • Detection of DISHONESTY or Irregularity
  • Correct and Complete Records of all the Transactions

Disadvantages of Internal check:-

  • Not for Small Organization
  • Grouping among Employees
  • Expensive
  • Chances of Collusion
  • Disorder in Work


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