Q.Test Checking is best defined as:
(A) Checking every single transaction recorded in the books
(B) Examining a representative sample of transactions and drawing a conclusion about the accuracy of the entire set
(C) A check performed only after the financial year has closed
(D) The evaluation of a company's internal control system as a whole

Test checking is defined specifically by sampling, not by checking everything or by evaluating internal control generally.

Option (A) describes routine checking, the opposite technique. Option (D) describes evaluating internal control (Class XI Ch9), a related but distinct activity.

Test Checking is the technique of selecting and examining only a representative SAMPLE of transactions from a large volume, rather than checking every single one, and drawing a reasonable, evidence-based conclusion about the accuracy of the WHOLE set of transactions from the result of examining that sample.

Option-by-option analysis:

• (A) Incorrect — checking every single transaction describes Routine Checking (Section a), the opposite in coverage.
• (B) Correct — this is precisely the definition of Test Checking (Section b).
• (C) Incorrect — timing relative to the financial year is not what defines test checking; audits generally, not specifically test checking, occur after the year closes.
• (D) Incorrect — evaluating the internal control system as a whole is a distinct activity (Class XI Ch9) that INFORMS how much test checking is needed, but is not itself the definition of test checking.