Answer in PM is better, i have given it heading, which will help you in retention, you can add point 1 & 3 from Nov 16 answer tp make it 12 point answer.
 
The general considerations in framing a system of Internal Check are –
 
1.Different Hands: No single person should have an independent control over any important aspect of the business. All dealings and acts of every employee should, in the ordinary course, come under the review of another.
 
2.Job Rotation: The duties of staff members should be changed from time to time without any previous notice. The same officer or sub-ordinate should not, without a break, perform the same function for a considerable period of time.
 
3.Leave: Every member of the staff should be encouraged to go on leave at least once in a year. Frauds successfully concealed by employees are often unearthed when they are on leave.
 
4.Assets – Books Differentiation: Persons having physical custody of assets should not be permitted to have access to the books of account.
 
5.Asset Verification: There should be an accounting control in respect of each important class of assets. They should be periodically inspected so as to establish their physical existence.
 
6.Mechanical devices: Mechanical devices such as the automatic cash register may be employed to prevent loss or misappropriation of cash.
 
7.Stock Taking: During year-end stock-taking, trading activities should, preferably, be suspended. Stocktaking and evaluation should not be done exclusively by the Stores Staff. Employees from other departments and sections should be employed for this task.
 
8.Delegation of Powers: Financial and administrative powers, e.g. signing of cheques, verification of assets etc. should be distributed very judiciously among different officers and the manner in which these are actually exercised should be reviewed periodically.
 
9.Review of accounts: Procedures should be laid down for periodical verification and testing of different sections of accounting records to ensure that they are accurate.
 
10.Review of Procedures: Accounting procedures should be periodically reviewed since even well designed and carefully installed procedures may become ineffective and redundant in due course.