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2.4 Internal checks 
Internal controls should not be confused with 
internal checks
,
which have a more restricted definition.
Internal checks
 
are defined as the checks on the day-to-day transactions whereby the work of one 
person is proved independently or is complementary to the work of another
,
the object being the 
prevention or early detection of errors and fraud. It includes matters such as the delegation and 
allocation of authority and the division of work, the method of recording transactions and the use of 
independently ascertained totals, against which a large number of individual items can be proved. 
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CHAPTER 9
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CONTROL, SECURITY AND AUDIT 
 
241 
Internal checks are an important feature of the day-to-day control of financial transactions and the 
accounting system. 
Arithmetical
internal checks include pre-lists, post-lists and control totals. 

A
 pre-list 
is a list that is drawn up before any processing takes place. 

A 
post-list 
is a list that is drawn up during or after processing. 

A 
control total
 
is a total of any sort used for control purposes by comparing it with another total 
that ought to be the same. 
A pre-list total is a control total so that, for example, when cash is received by post and a pre-list 
prepared and the receipts are recorded individually in the cash book, and a total of amounts entered in 
the cash book is obtained by adding up the individual entries, the control total obtained from the cash 
book can be compared with, and should agree with, the pre-list control total. Control totals, as you 
should already be aware, are frequently used in computer processing. 
2.5 Aims of internal checks 
Segregate tasks
, so that the responsibility for particular actions, or for defaults or omissions, can be 
traced to an individual person.