Scribd
Upload
12K views4 pages

Importance of an Audit Notebook

An audit note book is a record maintained by auditors during an audit. It is used to note errors, issues, questions, and correspondence. The note book provides a written record that can help auditors prepare reports and be useful for subsequent audits or as evidence if legal action is taken against an auditor. It contains details like the company's books, officials, accounting systems, any fraud or errors found, missing documents, account balances, unavailable records, audit dates, questions for supervisors, and correspondence. Maintaining an accurate note book has advantages like aiding report preparation, assessing audit staff, and providing documentary evidence in legal cases against an auditor.

Uploaded by

kamal_rajpal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
12K views4 pages

Importance of an Audit Notebook

An audit note book is a record maintained by auditors during an audit. It is used to note errors, issues, questions, and correspondence. The note book provides a written record that can help auditors prepare reports and be useful for subsequent audits or as evidence if legal action is taken against an auditor. It contains details like the company's books, officials, accounting systems, any fraud or errors found, missing documents, account balances, unavailable records, audit dates, questions for supervisors, and correspondence. Maintaining an accurate note book has advantages like aiding report preparation, assessing audit staff, and providing documentary evidence in legal cases against an auditor.

Uploaded by

kamal_rajpal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Introduction to Audit Notebook: Explains the purpose and importance of maintaining an audit notebook for audit reports and documentary evidence.
  • Contents of Audit Note book: Lists the key elements and records that should be maintained within an audit note book, including books of accounts and key officials.
  • Advantages of Audit Note Book: Details the benefits of using an audit note book, such as preparation support and providing documentary evidence.

Audit Notebook

An audit Note- Book is a book which is maintained by the audit staff during the
course of audit, to note the errors, difficulties, doubts and new points to be
discuss with the seniors or the auditor. Such a book is a written record of queries
made, replies received thereto, correspondence entered into, etc.
This book may be of great help to the auditor for preparing his audit
report from such a record. Audit note book is helpful for the subsequent audits
also for ready reference.
A separate Audit note book is maintained for each concern. If notes
have been properly made in the audit note book, it might prove of great value to
the auditor later on, in case a suit is filed against him for negligence or
misfeasance. Such a book will be documentary evidence in favor of the auditor
Contents of Audit Note book

a) A list of books of accounts maintained by the company


b) Names of key officials, their powers, duties, and responsibilities
c) The system of maintaining books of accounts
d) Details about the fraud and errors found in the books
e) Details about the missing vouchers, the duplicates of which have to be maintained
f) Totals or balances of certain books of accounts, bank reconciliation statement
g) List of books and records not made available for auditing
h) Date of commencement and completion of the audit
i) Any points which are to be discussed with the seniors or the auditor
j) Provisions in the Articles and Memorandum of Association affecting the accounts and Audit
k) Records of all important correspondence especially with the debtors, creditors
l) Totals of important ledger accounts
Advantages of Audit Note Book
1) It helps in preparation of audit report
2) It is useful in assessing the efficiency , ability and sincerity of the audit staff
3) It acts as an documentary evidence in the court of Law, if a case is filed against the auditor
for negligence of duty
4) Important points and queries which need clarification and explanation can be discussed
systematically with the help of audit note book

You might also like