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Audit note book and Audit working papers

Audit Notebook :

An audit notebook is a diary or registers maintained by audit staff to note errors, doubtful quarries and difficulties. The purpose is to note down the various points which need to be either clarified with the client or the chief editor. The Audit notebook is used for recording important points

to be included in the auditor’s report.


Contents of an Auditor’s Note Book:


1. A list of books of accounts maintained.

2. The names, duties and responsibilities of principal officers.

3. The particulars of missing receipts and vouchers.

4. Mistakes and errors detected.

5. The points which need clarifications and explanations.

6. The points deserving the attention of the auditor.

7. Various totals and balances.

8. The Points to be a part of the auditor's report.


Advantages of Audit Notebook:


Some of the advantages of the audit notebook are:


  1. It ensures uniformity and helps in knowing the amount of work performed.

  2. Important matters relating to the audit work may be easily recalled.

  3. Facilities and preparation of the audit report.

  4. In case of the assistant in charge is changed, no difficulty is faced in continuing the

  5. incomplete work.

  6. The responsibility of the errors undetected can be fixed on the clerk concerned.

  7. The audit notebook shows the extent of the interest and pain taken by the audit

staff. It helps in their appraisal.

  1. It ensures that the audit programme has been sincerely followed. Deviations can

be noticed.

  1. It is reliable evidence in the court of law If an auditor has to defend himself.


Audit working papers:


The term audit working papers designate the files of analysis, summaries, comments and

correspondence built by an auditor during the course of the fieldwork of an audit engagement. These

papers contain essential facts about the accounts which are under audit.


According to Arnold W. Johnson, ‘’ Audit working papers are the written private materials, which an auditor prepares for each audit. They describe the accounting information which he receives from his client, the methods of examination used, the conclusions (and reasons thereof) and the financial statements.”


According to Jack C. Robertson, “Working papers are auditor’s own evidence of

compliance with generally accepted auditing standards and of the decisions respecting all procedures necessary in the circumstances unique to the audit engagement.”


They consist of draft copies of trial balances, adjusting entries, accounts analysis, schedules

of debtors and creditors summaries of reconciliation statements, certificates of official comments copies of correspondence between auditors and debtors, creditors and bank, detailed schedule of items like depreciation, inventories previous audit reports, important quarries with explanation audit programme and other important materials.


Objective working papers :


The working paper serves the following purposes:


1. They represent the volume of work performed by the auditor and his staff, which helps in

preparing the report.

2. They show the extent of adherence to accounting principles and auditing standards.

3. They are useful as evidence against the charge of negligence.

4. They act as a guide for subsequent examinations.

5. They enable the auditor to know the weakness of the internal check system in operation

as also the accounting system.

6. They assist the auditor in coordinating and organizing the work of audit clerks.

7. They assist in the planning and performance of audit work.
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