Audit Note Book - Meaning, Contents and Advantages [Auditing Notes BCOM]

Audit Note Book - Meaning, Contents and Advantages 
[Auditing Notes BCOM]

Audit Note Book Meaning               2015, 2016

The audit clerk maintains the audit notebook.  He keeps therein a record of his observations during the course of any audit work as also the points to be discussed with his senior clerk or the auditor.  It is a written record of the queries made by him and the replies thereto.  It is part of permanent record of the audit office, which is used by the auditor while preparing his report. It should be noted that an audit notebook is meant to record only important and strategic items.  Matters, which are, or can be sorted out on the spot, or those of a trivial nature, need not be entered therein. 

Some of the important matters recorded in the Audit Note Book are as follows:

1. Name of the business.

2. Instructions from the management having relevance to the audit.

3. List of book of account maintained by the enterprise.

4. Accounting methods followed in the enterprise, and their defects.

5. Any irregularities in the observance of laws and notifications applicable to the enterprise.

6. List of missing vouchers and receipts.

7. Matters requiring explanation or clarification.

Advantages of audit note book

- The auditor is enabled to record important points, which arise during the course of his audit.

- He can produce this book as a documentary evidence in a suit filed against him for negligence or misfeasance.

- A notebook makes the work of audit convenient as all the important details about audit can be recorded in this book and, as such, any change in the staff of the auditor does not disturb or dislocate the work of audit.

- Such a book can help in making an assessment of the knowledge, efficiency and work of audit clerks.

- It makes the procedures of subsequent audit easier.

- It provides a key to evaluate the efficiency of the audit staff.