Principles (or) Features of Good Internal Check System
1. Division of Work: Division of work refers to dividing the total work among various staffs is such a way that no single person is allowed to perform the work from the beginning to the end. The work should be allocated to the employee based on the capacity and capability of each person.
2. Authority and Responsibility: Authority, duties and responsibilities of each person should be clearly defined and there should not be any overlapping or duplication of duties and responsibilities of any person.
3. Automatic Check: Work allocated to the staff should be in such a way that the work performed by one person is automatically checked by another person.
4. Rotation of Employees: A good system of internal check should provide for transfer or rotation of employees from performing one work to another at frequent intervals.
5. Proper Training to Employees: An effective system of internal check should carefully select the employees to the organization. The employees should be properly trained and clear instructions should be given to them to perform their work in an effective and efficient manner.
6. Proper system of Filling: Internal check system should provide for proper system of filling vouchers, correspondences etc. in a systematic manner.
7. Periodical Review: The system of internal check should at frequent intervals (be reviewed) and suitable changes should be introduced.
8. Usage of Electronic Equipment: The system of internal check should provide for usage of labour saving electronic devices such as calculating machines, personal computers, time recording clocks, book-keeping machines etc. The proper training should also be given to the employees for using these devices.
Example: picture showing the flow of internal check system in a textile showroom.