What is test checking? What precautions to be taken by auditor while adopting the test checking in auditing ?

A representative number of entries of each class are selected and checked and if they are found correct, the remaining entries are taken to be correct. This is known as Test Checking. It is a system of sampling employed by the auditor for the purpose of reducing the volume of detailed checking involved in the audit. Precautions To Be Taken - While adopting the test check, the auditor must take the following precautions: Entries selected for test checking must be representative of all transactions. The selection of the items should be at random. It cannot be adopted in case of vouching the cash book. Client's staff should not come to know of the entries selected for test checking. Period selected for test checking should differ from book to book and year to year. He should not adopt test checking where the law requires thorough audit. A number of entries of the first and last month of the year must be checked thoroughly. Test should be so devised that a sizeable portion of the work done by each employee is checked. Control accounts or impersonal ledger should not be subject to test checking. Auditor should select the test independently without regard to the suggestions of the member of the client's staff. Bank statement and entries for cash withdrawal and cash deposits should be checked in full.