'Internal check is a system under which the accounting methods and details of an establishment are so laid out that the accounts and procedures are not under the absolute and independent control of any person.' Elaborate

The essential features of internal check are given hereunder: There should be proper division of work and responsibilities. The duties of each person should be properly defined so as to fix definite responsibilities of each individual. Possibilities of giving absolute control to anybody should not be left out unchecked. Too much confidence on a person should be avoided. The duties of staff should be rotated and one person should not be allowed to occupy a particular area of operation for long. Necessary safeguards should be provided so as to avoid collusion of thoughts which quite often leads to commission of fraud. The person handling cash, stock, securities should be given compulsory leave so as to prevent his having uninterrupted control. Physical inventory of fixed assets and stocks should be taken periodically. Assets should be protected from unauthorized use. To prevent loss or misappropriation of cash, mechanical devices such as the automatic cash register, should be employed. The financial and administrative powers should be distributed very judiciously among different officers and the manner in which these are actually exercised should be reviewed periodically. Accounting procedures should be laid down for periodical verification and testing of different sections of accounting records to ensure that they are accurate.