Test checking refers to
a) Testing of accounting records
b) Testing of honesty of employees
c) Intensive checking of a selected number of transactions
d) Checking of all transactions recorded
Answer: (c) Test checking refers to intensive checking of a selected number of transactions. Test checking is a process of selecting and checking of a few transactions from a large volume of transactions. If the entries checked are found to be correct then the auditor assumes that the remaining entries are also correct.
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