For an internal check system to be more successful and efficient, specific criteria are required. The following qualities are known as internal check system features or characteristics:
1. Individual Accountability
Each individual's accountability must be clearly defined and established. The business's work should be distributed among the numerous clerks so that their obligations and responsibilities are clearly and fairly separated.
2. Completion
The task should be divided so that no single person is allowed to complete it from beginning to end by himself. There should, however, be no duplication of effort.
3. Employee Rotation
A effective internal control system should prevent those in charge of assets from accessing the books of account. The business must implement a mechanism for transferring or rotating staff from one workstation to another.
4. Automatic Check
An excellent internal check system should allow for the automatic checking of one clerk's work by another.
5. Reliance
No business clerk should be depended upon excessively.
6. Safeguards
Prescribed safeguards should be in place to store unused checkbooks, files, and securities, among other things.
7. Monitoring
Tight supervision should be used to guarantee that the necessary internal checks and processes are fully operational.
8. Formal Sanction
No deviation from established procedures should be allowed until the top official has formally sanctioned it.
9. Periodic Review
The internal check system should be reviewed regularly to make changes.
