Checks and balances,
Definition of Checks and balances:
Company: An internal control mechanism that protects against fraud and error due to failure. In a check and balance system, the decision-making power and the relevant responsibilities for verifying the correct implementation are divided into different departments. These departments are logically and physically separated and no department can complete the transaction on its own. For example, the purchasing department orders the goods, the business department accepts and compares with the individual orders, the quality insurance department checks and checks the quality, the accounting department checks the invoice amount and then Only the controller allows payment for the purchase. . This process emphasizes interdependence without interference and creates data or paper paths for testing.
Against any influence that governs an organization or system, it usually ensures that political power is not concentrated in the hands of individuals or groups.
Government: An extension of the separation of powers theory, according to which each branch of government (if necessary) can oppose the actions or decisions of other branches. This regulation guarantees transparency and prevents the government from being influenced by the branches.
How to use Checks and balances in a sentence?
- An independent company audit is a great way to maintain checks and balances and, ultimately, to identify and / or minimize errors or omissions.
- The company's control system is unforgivable and minimizes the number of thefts and misuses of the company.
- In Washington, D.C., the three branches of government act as control mechanisms, creating a stronger and better government structure, with one party responsible for ignoring the other.
- The current system offers excellent control and balance that guarantees fair and transparent distribution.
Meaning of Checks and balances & Checks and balances Definition