Internal check system is such a system in which duties of different assistants are divided and allocated to each other in such a way that their work is supplementary and dependent upon each other. By this system the work is automatically checked as it is done.

Since one particular job is not assigned to any single individual chances of mistakes are very less. Division of work and delegation of authority are two basic principles that help this system work.

For example withdrawal of money from a bank: – In this case on clerk enters the cheque in the books of account or ledger. Second person checks the credit balance available in the account and third person gives the payment. In this way, there is a division of work and authority and chances of mistake are minimized.

According to L.R. Dicksee: – “ internal check is such an arrangement of book keeping routine that errors are likely to be prevented or discovered by the very operation of the book-keeping itself”.

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