Can Anyone Explain The System Of Internal Check Suitable For Manufacturing?

The first requirement is that the adequate and complete staff should be available for the effective operation of internal check in case of a manufacturing concern. The cashier should have no access to the ledgers nor should the ledger clerks keep the books of original entry. All correspondence received should be opened everyday by a responsible official, remittances received should be crossed and marked account payees only and entered in as cash diary before being handed over to cashier.

All cash receipts should be deposited in bank everyday and the cash book reconciled with the pass book periodically. Receipts for cash received should be issued on official forms and signed by a responsible official and unused stock of receipt books being kept under lock and key. There should be adequate supervisor of cash sales.

All payments should be properly authorized and be made by cheque. Payment of wages should be subject to proper supervision. Petty cash should be kept on the imprest system.
Purchases should be subject to proper control and all inward invoices should be checked. Credit notes for returns and allowances and bad debts written off should be authorized by responsible official before they are entered in the books. If there are branches, goods should be supplied to them at selling price.