During audit of entries, involving large amounts or relating to material accounts are seen exhaustively and entries are picked up for verification at random from the remainder according to a certain plan is known as test checking. The only quality that this technique can claim lies in its keenness to cover larger amounts and material accounts. Even it errors, frauds etc. remain undetected in the part not checked, they are not likely to be too big as to upset the truth and fairness of the financial statement.
Statistical sampling is a method of audit testing which is more scientific based entirely on the auditor‟s own judgment because it involves use of mathematical laws of probability in determining the appropriate sample size in varying circumstances. Statistical sampling has reasonably wide application where a population to be tested consists of a large number of similar items and more in the case of transactions involving compliance testing, debtor‟s confirmation, payroll checking, vouching of invoices and petty cash vouchers.