Internal check is an element of the internal controls system where the activities of an individual in the organization/entity are automatically checked by another. This is facilitated by segregation of duties where by the various activities in transaction processing is carried out by independent persons. For example in the purchase of raw materials the person paying the supplier‘s invoices counter checks to ensure that the amount billed by the supplier agrees with the cost of the purchase as per the authorized purchase order. This independent check is an example of internal check. On the other hand internal audit internal audits are an appraisal or monitoring activity established by management for the review of accounting and Internal Control System as a service to the entity. It examines, evaluates and reports to management on the adequacy and effectiveness of the systems.
