Routine checking is the regular monitoring of business accounts, books and ledgers to determine how the business is functioning and to detect any errors that may have occurred, either accidentally or fraudulently.
Method
Routine checking is conducted by closely examining books, ledgers, accounts and other financial documents for arithmetic errors. The auditor checks the balances, subtotals and totals on these documents and calculates the differences, transferring them from page to page. If discrepancies are discovered in the amount that is transferred at any point, inquiries will be made on individual balances to ensure accuracy.
Advantages
Routine checking is easy to perform and ensures that a business is operating to its full potential. If errors are detected, it could also potentially save a company money, especially if fraud is involved.
Disadvantages
Routine checking can be expensive for the company, and it's tedious for the employee who must perform it. Major errors or fraudulent changes in books and ledgers can be overlooked as well, especially if the person performing the routine checking has not been thoroughly educated in locating them.