[Solved] Test checking should not be applied to

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

  1. Management audit means
  2. Systems audit implies
  3. Internal audit means
  4. Internal audit is
  5. Detection of errors and fraud in audit is  
  6. Internal auditor is appointed and removed by the  
  7. The object of internal check is to
  8. Effective internal check system reduces
  9. Internal check is a part of
  10. The objective of internal audit is

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