"Test checking reduce the volume of the work considerably but not reduce the liability of the auditor." Explain and write the advantages and disadvantages of test checking.

Carrying out detailed check of each and every transaction of a large business shall be time consuming for the auditor. In auditing the accounts of a business, every single copy is not usually checked by the auditor; what is usually done in practice is that a representative number of entries of each class are selected and checked and if they are found correct, the remaining entries are considered to be correct. This is known as Test Checking. In those organizations, where satisfactory internal check system is in existence, the auditor need not carry out detailed checking. He may adopt 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. If, in Test Checking, he finds that the records checked by him are correct then no further detail checking is required be carried out. Advantages of Test Check Volume of work is considerably reduced. There is a saving in terms of time, cost and energy. The extra time available can be utilised in concentrating on the areas of considerable importance. If done carefully, test checking can be quite effective. Disadvantages of Test Check The auditor always is under fear that he may have missed out certain important items or some errors may remained undetected while test checking. Where the client's staff is aware that the auditor resorts to test checking, the staff may become careless.