The Advantages of Test – Checking are that it reduces the immense volume of work entailed in an audit, without detracting from the value of the audit, and thus permits the auditor to devote more time to important matters of principle. It also ensures the periodic examination of the system of internal check. Any weaknesses in the system or its operation are detected and removed.
The Disadvantages of Test – Checking are that it leaves large record unexamined. If the same routine is followed at each audit, it will not be possible to detect irregularities. Unless carried our intelligently, test
– checking may become a farce and almost useless as a check on the accounts.