Test checking should not be applied to
a) Sales book
b) Purchase book
c) Bank reconciliation statement
d) Bills book
Answer: (c) Test checking should not be applied to bank reconciliation statements. Test checking is a process of selecting and checking 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.
More MCQ and Answers on Auditing
- Management audit means
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- Internal audit means
- Internal audit is
- Detection of errors and fraud in audit is
- Internal auditor is appointed and removed by the
- The object of internal check is to
- Effective internal check system reduces
- Internal check is a part of
- The objective of internal audit is