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Surprise check is called Investigation and investigation is all what we call Auditing, and Auditing is part of Internal Control. So all surprise checks are part of Internal Check.
In audit work/procedures, there is the term called Surprise check. Surprise Check is also known as Test Check. The advantage and features of Surprise Check are as follows:
Advantages of Surprise Check
Able to reduce the auditor routine work so that he can devote his time to more important aspects.
Features Of Surprise Check
Entries selected for surprise check should be representative of the whole, and the entries of every description must be tested
Selection of items to be checked should be at random.
Salient Point
Surprise Check Or Test Check is useful and important that if a client’s internal control system is reliable but when surprise check reveal discrepancies then the auditor should do a thorough checking of the books and other relevant records.
Yes, Surprise checks part of internal check.
Surprise checks are also called as Test Checks. Normally every internal checks are periodical like monthly, yearly and so on. For example checking of physical cash and inventory. If internal checks are periodical then the concerned staff may be ready at that time knowing that its time for internal checks and he has to keep every thing furnished, how ever if it is a surprise check which comes without any prior information he may not be ready and Auditor may find some discrepancy keeping in view that its surprise check. Many times we have seen that surprise checks produce better result rather than normal schedule checks.
In my opinion, yes, Surprise check is also known as Test check, or Selective Verification or Sampling Process.
Surprise checks are mainly intended to ascertain whether the system of internal control is operating effectively and whether the accounting and other records are prepared concurrently and maintained up to date
Errors in book keeping are often indicative of weakness in internal control. An element of surprise can significantly improve the effectiveness of an audit and therefore, whatever practicable, an element of surprise should be incorporated into the audit program.
While drawing the surprise check program following could be considered
Sample should be selected from the various books of accounts and different times
Sample selection is to be made in random basis
Transactions of cash and inventory should be checked thoroughly
Surprised checks have a positive impact on auditing and helps an auditor to complete work in less time assist in saving cost of labor but this program would not produce guaranteed result, there are chances of living errors and frauds because transactions may be left out from the random selection process.
As Internal check is one regulated by standard policy and procdures surprise cant be a part of it.At the same time surprise chek can be done while performing internal cheks in some part of branches and surprise visit to a branch which is not in agenda.it is a matter of convenience between the audit department and managment.
Yes, they are as they inform the auditor of the general practices being followed and the controls that are in place during normal routine of work.
Surprise check is actually a part of the normal internal audit or check. The element of surprise can significantly improve audit effectiveness. Its primary goal is to determine whether errors or frauds do exist in the company, and if such exist, you could promptly bring the matter to the management and that corrective actions could be done the earliest.
Surprise checks are mainly intended to ascertain whether the system of internal control is operating effectively and whether the accounting and other records are prepared concurrently and kept up-to-date. And all kind of investigations are under Audit that means Internal control. That's why we can say surprise checks are really intended to internal checks.
Internal control is a part of monitoring which is directly linked with organization's strategic planning & its operational implementation to ensure accurate financial reporting whether internal or external. Sometimes surprise check remove the hurdles which can not be find out in routine or schedule audit.
Therefore, Being an important part of audit it regulate the ongoing activity and further put re-engineering that refer to know the process first then go ahead for necessary action requires.
Own internal audit controls is something fundamental about the way the audit work
