Distinguish between Internal Control System and Internal Check System. Also distinguish between Internal Check and Internal Audit. (5 marks)

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Accepted Answer

**Internal Control System vs. Internal Check System**

| Basis | Internal Control System | Internal Check System |
|---|---|---|
| Scope | A broad umbrella — organisational, administrative, and accounting safeguards together | A narrower, specific technique WITHIN internal control |
| What it covers | The entire plan of organisation and every procedure management adopts | Specifically, how routine accounting/clerical work is divided so one employee's work checks another's |
| Nature | Includes controls beyond day-to-day transaction processing (e.g. staff training, organisation charts) | Confined to the arrangement of routine transaction-processing duties |
| Relationship | The whole | A part of the whole |

**Internal Check vs. Internal Audit**

| Basis | Internal Check | Internal Audit |
|---|---|---|
| When it happens | Continuously, as part of the ordinary routine of doing the work itself | Periodically, as a separate review carried out AFTER the routine work is done |
| Who performs it | The same regular staff, as a built-in by-product of how duties are divided | A separate, dedicated internal audit staff/department |
| Extra staff needed | No | Yes | …

Q.Distinguish between Internal Control System and Internal Check System. Also distinguish between Internal Check and Internal Audit. (5 marks)

Concept understanding — Internal Control System vs Internal Check System

Q.Distinguish between Internal Control System and Internal Check System. Also distinguish between Internal Check and Internal Audit. (5 marks)

Concept understanding — Internal Control System vs Internal Check System

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