Question

What is objective of verification of internal check of purchase?

Answer 1

Objectives Of Internal Check

Following are the main objectives of Internal Check −

To protect business from carelessness, inefficiency and fraud.

To ensure and produce adequate and reliable accounting information.

To keep moral pressure over staff.

To minimize the chances of errors and frauds and to detect them easily on early stage if it is committed.

To divide the work in such a way that no business transaction should be left unrecorded.

To fix the responsibility of every clerk according to the division of work.

Answer 2

Answer:

The main object of internal checking are:-

Explanation:

1. To allocate duties and responsibilities of every clerk in such a way that he may be held responsible for a particular error or fraud;

2. To minimize the possibilities of errors, fraud or irregularities;

3. To distribute work in such a way that no business transaction is left from recording;

4. To prepare final account with ease and efficiency as an efficient system in internal check can make account more regular and reliable; and

5.To exercise more pressure over staff.