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Audit Notebook

What is audit notebook

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Samarth Sahu
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46 views

Audit Notebook

What is audit notebook

Uploaded by

Samarth Sahu
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Audit Notebook:

Definition& Meaning:
Eric L. Kohler defines audit notebook as “A record, used chiefly in recurring audits, containing data
on work done and comments outside of the regular subject matter of working papers.”
In simple words, while conducting an audit, the auditor’s staff comes across certain points which
require further clarification explanation and investigation and they will record the same in the diary
maintained for the purpose, which is called as the “audit notebook”.
The audit notebook is maintained by audit assistants.
It is a written and systematic record of the queries raised by them and the replies thereto.
Audit notebook may be in the form of a bound register or loose sheets file.
Contents of Audit Notebook:
A. General Information and
B. Special Information
A) General Information:
Following are included in the general information.
1. The name of the auditee and the audit period covered.
2. The nature and type of business carried on and important documents relating to the business.
3. A list of books of accounts and documents maintained by the client.
4. Summary of important points of the articles.
5. Names of the principle officers and their duties-responsibilities.
6. Conclusions regarding the accounting system and internal control system & details of the
accounting policies followed in the organisation.
7. Total of important ledger accounts.
8. A copy of the Audit plan and Audit programme.
B) Special Information:
It includes the following points,
1. Date of commencement and completion of audit.
2. Details of frauds and errors discovered.
3. Quarries raised which are unsolved.
4. All those points which requires further information of explanation.
5. Those points to which the attention of the auditor is required to be drawn.
6. Extracts or copies of the minutes and other important legal documents.
7. Important matters which are felt necessary to be included in the audit report.
Advantages:
1. Important matters relating to audit work may be easily remembered.
2. Ensures continuity of audit work.
3. Serves as a proof against charge of negligence.
4. Serves as a guide in framing future audit programmes.
Disadvantages:
Audit notebook, if prepared negligently and carelessly by the audit assistants, can be used as an
evidence of negligence by the auditor in carrying out of the audit. Therefore, the auditor should
supervise the work carried on by the assistants.

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