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Create and preserve 
the records that act as confirmation of physical facts and accounting entries. 
Break down routine procedures 
into separate steps or stages, so as to facilitate an even flow of work 
and avoid bottlenecks. 
Reduce the possibility of fraud and error
. The aim should be to 
prevent
fraud and error rather than to 
be able to 
detect
it after it has happened. Efficient internal checks make extensive fraud virtually 
impossible, except by means of collusion between two or more people. 
Internal checks
, importantly, imply a 
division of work
, so that the work of one person is either 
proved 
independently 
or else is complementary to the work of another person.
2.6 Characteristics of a good internal control system 
(a) 
A clearly defined organisation structure
(i) 
Different operations must be separated 
into appropriate divisions and subdivisions. 
(ii) Officers 
must 
be appointed to assume responsibility 
for each division. 
(iii) 
Clear lines of responsibility 
must exist between each division and subdivision and the 
board. 
(iv) 
There must be overall 
co-ordination of the company's activities 
(through corporate 
planning). 
(b) 
Adequate internal checks
(i) 
Separation of duties 
for 
authorising 
a transaction, 
custody 
of the assets obtained by 
means of the transaction and 
recording 
the transaction. 
(ii) 
'Proof measures' 
such as control totals, pre-lists and bank reconciliations should be used. 
(c) 
Acknowledgement 
of work done: persons who carry out a particular job should acknowledge their 
work by means of signatures, initials, rubber stamps, and so on
(d) 
Protective devices for