Write any two objectives of internal check.

Internal checks refer to the system of controls and procedures implemented within an organization to safeguard its assets, ensure accuracy in financial records, and promote operational efficiency. The two key objectives of internal checks are:

1. Prevention of Errors and Frauds Internal checks help in detecting and preventing errors and fraudulent activities by ensuring that duties are divided among different employees. This segregation of duties reduces the risk of collusion and increases accountability. For example, the separation of authorization, recording, and custody of assets minimizes the opportunity for fraud.

2. Ensuring Accuracy and Reliability of Records Internal checks ensure that financial records are accurate, complete, and reliable. By implementing verification procedures, such as reconciliation of bank statements, cross-checking of records, and periodic audits, discrepancies can be identified and corrected promptly. This enhances the integrity of financial reporting and decision-making.