Railway Accounts Department Examinations

Thursday, February 25, 2021

Internal Audit and Differences between Internal Check & Internal Audit

 Internal Audit 

And

 Differences between Internal Check & Internal Audit


Internal Audit:


Objectives:


  • A Service to Management

  • Provides assurance of an effective system of Internal Control that is not excessive.

  • Ensure reliability and integrity of accounting and financial system & Operating Performance. 

  • Ensure compliance with policies, plans, procedures, laws & regulations. 

  • Ensure adequacy of arrangements for safeguarding the Assets.

  • Facilitate prevention & detection of frauds. 

  • Highlight the deficiencies (in the system, control, practices etc), 

  • Efficiency & scope for economy in the utilisation of resources. 


Internal Audit Cell


  • Functioning at Hqrs as well as Divisions. 

  • Normally consists of one SSO, One TIA and one ISA under the control of Dy.CAO/G or Sr.DFM

  •  Theme Based Audit is one of the Important function of the Internal Audit Cell



Differences between Internal Check & Internal Audit



SN

Internal Check

Internal Audit

1

Check of Day to Day transactions.  Work of One person is proved independendently or complementary to the work of another

Selected few topics - Checking in all aspects to ensure effectiveness of System, Compliance of policies & Prevention of frauds.

2

Checking by the Same section staff

Review activity carried out by Persons totally independent of Internal check personnel

3

Frequency  Daily/Regular Basis

Frequency - Periodic Basis

4

Built in device

Not built in device

5

Object: Early detection of fraud or prevention of frauds at the time of passing Bills

Suggests System improvement & ensure compliance, service to the Management, Compliance of policies

6

Checking every aspect

Checking few selected topics thoroughly(in all aspects) in order to achieve the object of System improvement/Service to Management

7

Object: Narrow

Object: Broad

8

Basis: Transaction/Bill/Event

Basis: System as a whole


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