INTERNAL CHECK :-Internal check means that check imposed in such a way on a day to day transaction that work of one person is checked by another person automatically in this way the chances of frauds and errors minimizes. Because the errors or mistake made by one person is detected by another.
POSITION OF AUDITOR or RESPONSIBILITY OF AUDITOR :-
Internal control system is closely related to audit. Auditor's position or responsibility with regard to internal control is given below :
1. Examination :-
First of all an auditor should satisfy himself about the working of proper internal control system. He should examine carefully the system of internal check before deciding the scope of work, he would do.
2. In Case Of Satisfactory System :-
If the auditor is satisfied about the effectiveness of internal control then he should check the efficiency and its existence by checking various items from different place. After it he may pay more attention to other important parts of his work.
3. Unsatisfactory Case :-
If the auditor feels that internal control system is not satisfactory then he should check those accounts where errors are likely to exist. If the internal control system can not satisfy the auditor then he should report the client in writing.
4. Some Sections Are Inadequate :-
If auditor feels that over all system is satisfactory but certain sections of the system appears to be inadequate then h should inform the client about the dangers.
5. Suggestions :-
Auditor should also give suggestions that how weaknesses can be removed if he is asked by the client.
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