Routine & Test

Checking

Routine checking

of all the daily

transactions is known as Routine Checking.
Routine checking incorporates following tasks
1. Checking of record in primary books, costing,
transfer etc.
2. Checking transfer of transactions from original
books of accounts to ledger account
3. Checking debit and credit side of various
accounts
4. Checking transfer of balances of various
accounts to other pages or accounts or statements

ADVANTAGES
Helps in ascertaining the arithmetical accuracy of
the accounts
Early detection of frauds and errors of simple
nature
Being a simple job, it can be done by a person
with ordinary knowledge of accounts

DISADVANTAGES
Causes monotony in the staff performing it
because of its mechanical nature
only minor fraud cases can be detected, not
the planned frauds

Test checking means to select and

examine a representative sample from a
large number of similar items

ADVANTAGES
Test checking saves time and energy
It helps in reducing the cost of audit

DISADVANTAGES
There are chances of living errors and frauds
because transactions with frauds may be left out
from audit
Test check increases the responsibility of
auditor because an auditor should be responsible
for the undetected errors and frauds due to
application of test check

THANK YOU
Made by :Rupali Sengar