Railway Accounts Department Examinations

Showing posts with label Internal check. Show all posts
Showing posts with label Internal check. Show all posts

Thursday, February 25, 2021

Internal Audit and Differences between Internal Check & Internal Audit

 Internal Audit 


 Differences between Internal Check & Internal Audit

Internal Audit:


  • 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


Internal Check

Internal Audit


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.


Checking by the Same section staff

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


Frequency  Daily/Regular Basis

Frequency - Periodic Basis


Built in device

Not built in device


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


Checking every aspect

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


Object: Narrow

Object: Broad


Basis: Transaction/Bill/Event

Basis: System as a whole