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CS Professional · Internal and Forensic Audit · Internal Audit: Introduction and Overview

At Kaveri Textiles Ltd, the accounts team is organised so that the clerk who prepares sales invoices does not handle cash receipts, and a second clerk independently verifies each invoice before dispatch. Which term best describes this arrangement?

The arrangement is internal check. Work is divided so that no single employee handles a transaction from start to finish, and one person's work is automatically verified by another as part of routine operations, without any separate review function.

  1. AInternal checkCorrect
  2. BInternal audit
  3. CStatutory audit
  4. DManagement audit

Explanation

Dividing duties so that one person's work is automatically verified by another during the routine operation of the system is internal check. Internal audit is a separate, independent review of the system after the fact, so it does not describe a built-in division of work.

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