Internal document definition
/What is an Internal Document?
An internal document is a record that is created and maintained within an organization to support its operations. These documents provide evidence of transactions, decisions, or procedures carried out by employees. Common examples include internal reports, purchase requisitions, memoranda, and workflow records. Internal documents help management monitor activities and maintain accurate accounting and operational records. Because they are intended for internal use, they are generally not distributed to parties outside the organization.
Examples of Internal Documents
Examples of internal documents are as follows:
Employee timecards and timesheets. Used to track employee hours, overtime, and leave.
Production plans. Itemizes which products will be run through the manufacturing process at specific times.
Purchase requisitions. Itemizes the goods and services that employees have submitted for purchasing authorizations.
Receiving reports. Itemizes what has been received by the warehouse staff.
Sales orders. Itemizes the orders placed by customers.
Scrap authorizations. States which inventory items are authorized to be scrapped.
Do Auditors Use Internal Documents?
When an auditor is examining an organization's books, little reliance is placed on internal documents, since they are created internally and so are more likely to have been fabricated or altered than documents acquired from third parties.
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FAQs
Are internal documents legally binding?
Internal documents are not usually legally binding on their own because they are primarily intended for internal communication and recordkeeping. However, they can become legally significant if they document approvals, policies, or decisions relevant to a dispute or audit. In legal proceedings, internal documents may serve as supporting evidence of actions taken.