Question

Whya do you understand by internal check system?

Answer 1

In business houses, the work connected with the preparation and maintenance of accounts is distributed amongst the various members of the staff in accordance with their distinctive qualifications.

One person enters the transactions in the books, while others perform tasks relating to posting, handling cash and entering cash transactions into the Cash Book. Besides these, duties pertaining to writing up Purchases Book and its postings are not entrusted to a single person.

These are some of the examples which substantiate the argument that different duties are assigned to different hands.