Internal audit and internal check are two similar but different concepts. They both focus on how a company’s internal processes work, but they look at them from different angles.
The main difference is that an internal check is usually done by someone within your company (like an employee) whereas an internal audit is a process that is outsourced to a third party.
Before we move to the differences, let’s understand what are Internal Check and Internal Audit:
- Internal Check: An internal check is any type of review or investigation that takes place within an organization to ensure compliance with company policies and procedures.
- Internal Audit: Internal auditing is a process of reviewing an organization’s activities and operations to evaluate the adequacy and effectiveness of risk management, control, and governance processes.
Now, let’s move to Internal Check vs Internal Audit:
Major differences between Internal Check and Internal Audit
|Internal Check||Internal Audit|
|Internal checks are often conducted on a regular basis as part of a company’s routine.||Internal audits are generally performed as part of a larger project or program.|
|Internal checks can be performed using various methods such as sampling techniques or graphically.||Internal audits may also use these methods but they tend to involve more formalized processes such as the use of questionnaires and interviews.|
|Internal check is an arrangement of the work.||Internal audit is an examination of the work.|
|An internal check has no legal ramifications.||Internal audit can lead to legal action against companies if problems are found with their financial records.|
|Internal Check is a continuous process that is conducted by an internal staff of the organization.||Internal Audit is a periodic process that is done by an external auditor.|
Note that sometimes, the question might also be asked as “distinguish between Internal Check and Internal Audit”.
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So we can conclude that Internal checks and internal audits are two very important functions that ensure the proper functioning of an organization. They perform this function by checking the records related to financial transactions, operations, policies, procedures, and other areas pertaining to management.
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