Essentials of Test Checking

Essentials of Test Checking

1. Sample
The sample items selected from whole data must be representative. The selection can be made by any method. The entire data must be presented in the form of sample.

2. Last Month
The last month of the accounting year is most important. The items appearing in the last month must be given maximum importance at the time of selecting the sample.

3. First Month
The first month of accounting year provides essentials information. The transactions recorded in the first month must be assigned high weight age in order to select the sample.

4. Surprise Testing
The auditors include the element of surprise in selection of test. The accounting staff must be unaware of test checking so that he should not make arrangement for test checking.

5. Checking Method
The auditor can change his method of selecting the sample. At one time he can one use alternate method. The selection method must be charged in time to time.

6. Every Type of Transaction
The auditor must select every type of transaction in test checking. There is a need to include each type of dealing in the sample.

7. Every Employee
The auditor can select the work of every employee. The test checking can be used to examine the work of all employees in the organization.

8. Through Out The Year
The test checking can be applied to all items appearing in the books through out the year. The recurring items are most suitable for test checking.

9. Cash Book
The cash book entries must not be used for test checking. There is a need of cent percent checking of all cash items appearing in cashbook. The control over cash is essential for efficient business working.