Perception of Test Check

Test Check is a substitute for detailed checking. Big business houses have a lot of transactions. So, it is very difficult to check all the transactions in detail. It is a process of selecting and checking a few transactions from a large volume of transactions. An auditor needs to prepare and present a report in a short period of time. So, an auditor checks the sample transactions and prepares and presents report to the concerned authority which is known as ‘Test Check’. The use of test checking is, however, dependent upon the system of an internal check-in operation. It is also known as “Selective Verification” or “Sampling Process”. An auditor checks the books of accounts of a particular time or area if there is no any doubt, s/he proves the account as true and fair, otherwise auditor checks in detail where s/he has doubts. The basis of though selected or checking during the audit. If this system is satisfactory, this checking can be of immense help to the auditor.

But if any errors or frauds are left out due to random sampling, an auditor will be responsible for such losses. So, an auditor applies a test to check if an internal check is effective in the organization.

Following points are to be taken into consideration while applying test check:

  • When there are large volumes of identical or routine transactions. The sample should be selected from the various books of account and of different times.
  • When transactions are large. Transactions related to the beginning and ending period of a particular year should be checked in detail.
  • When the auditor has to certify the accounts quickly after the close of the accounting period. Transaction related to cash and stock should be checked in detail.
  • When the auditor has past experience about the nature of transactions of the client’s organization. Sample selection is to be made on a random basis, not in a planned way.
  • When a satisfactory system of internal control and check system exist. Detail check of Bank Reconciliation Statement is necessary.


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