What Is Audit Note Book?

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What Is Audit Note Book?

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Answer 1

During the course of an audit, an auditor has to make several queries which might not have been satisfactorily answered, auditor might have taken down total of different books of accounts and auditor might have taken down the total of different books of accounts and certain other points which auditor would like in incorporate in his audit report.

Audit note book consist of different points. Particulars of the vouchers and invoices which could not produced at the time of audit, points which could not be satisfactory answered and which required further clarification, explanation and meaning of the technical terms pertaining to that particular business, information and explanation received during the course of audit, a record of the work done at each visit, schedule of investments. Debtors, creditors and important legal points affecting the rights of directors, shareholders, partners etc and points which must be incorporated in the audit report are content of audit note book. A copy of audit program is also kept in this note book.

Audit note book is of great help to an auditor at the time of preparing the report to be submitted to the shareholders. In case of charge of negligence against the auditor, audit note book may prove to be good evidence in court law.

Answer 2

Anonymous answered

An Audit note book is one in which the auditor makes notes of all important items that he comes across in course of his audit work.

Answer 3

AUDIT NOTE BOOK.
In contemporary literature on auditing we find no reference to audit note book. Neither this term is used in International Standards on Auditing nor in any statement of a body of professional auditors. Audit note book is a term used by authors of old literature of auditing. It was used to describe working papers. But for the working papers use of the term audit note book is not appropriate because working papers are not as brief to make it suitable to describe them as audit note book. Therefore, the term audit note was never in use among professional auditors of contemporary age. However, at the early stage of business development when auditor used to hear the arguments, may be they used to maintain record of the proceedings in the form of a note book. Here is pertinent to quote a few line from the book of a professional auditor: “During my whole professional life, I have seen only working paper files and correspondence files to record all the affairs of an audit ………. An invariable repetition of the topic in examinations makes me to conclude that even the examiners (not only common B.Com. Educators) have never attended office of any chartered accountant or they have no practical knowledge of auditing. They are asking to describe a thing which does not exist in reality.” (M. Arif Ch. & Mahmood Ahmad Ch., Auditing, 2002, Syed Mobin Mahmud & Co., 9/4 Rattigon Road, Lahore, Pakistan, P.79.)