Railway Accounts Department Examinations: Internal check

Showing posts with label Internal check. Show all posts

Thursday, April 7, 2022

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