1. Techniques of Auditing

2. Auditing Technique
These are the ways by which an auditor obtains evidence about the transactions recorded in the books of accounts.
Inspection
Observation
Enquiry & Confirmation
Computation
Analytical Review

3. Test Check
Test checking means to select and examine a representative sample from a large number of similar items and applying audit procedures on the same.
When items are selected and checked on the basis of personal judgement, it is called as Test Check.

4. Features of Test Check Scientific Process of Estimation
Coverage of Material Items
Full coverage over a time period
Surprise Element
Flexibility
Judgement Based

5. Factors Deciding the Size of Sample
Internal Control System
Previous History
Time
Audit Objectives
Risk Tolerance
Nature & Volume of Business
Analytical Review

6. When is Test Check Required
Volume of Transactions – Large
Less Time for Completion of Audit
Identical Transactions
Internal Control system- Satisfactory

7. Advantages & Disadvantages
Audit Objective
Expertise
Exception Principle
Assessment of Risk
Saving in Time
Reduction in Work Load
Moral Check
Disadvantages
Biased
Unauthentic
Greater Risk
Unscientific
Change in Level
No element of Surprise

8. Precautions Classify & Stratify Systems Internal Control Planning
Bias Free
Avoidance of unsuitable areas
No. of Transactions
Significance of Error