AUDIT NOTE BOOK &

WORKING PAPERS
George Jose

Audit Notebook
Sort of diary maintained by auditing staff for
recording their difficulties and experiences.
Takes note of all irregularities identified in course
of audit, unsatisfactory arrangements, weaker
financial administration.
Includes recording of:
A. General information &
B. Specific points.

Contents of Audit Note Book

List of books of accounts

Nature of business
Name of the officers
System of accounting and internal control
Technical terms
Major provisions of AOA & MOA affecting
audit
Financial and administrative structure

Contd...
Accounting policies followed by the
company
Queries in course of audit & their disposal
List of missing vouchers
Mistakes and errors
Matters to be discussed with the auditor
Dates of commencement, closure, total
balances
Points to be included in audit report.

Usefulness

Records important matters

Facilitate preparation of audit report
Assist auditor to assess the efficiency
Serves as a reliable documentary
evidence in support of audit work
Provides guidance to the audit staff
Helps in framing of future audit
programmes.

Audit Working Papers

Constitute the link between the
auditors report and clients record.
Documentation as per AAS-1 and
AAS-3.
A combination of AOA, MOA/ P. D./ T.
D. Plus contents of minute books,
balance sheet, P&L a/c, Letter of
engagement.

Ownership & Custody

Property of the auditor
Entitled to retained by himself
Case of Chantery Martin & Co. v/s
Martin
Confidentiality

Features

Standard Form & Layout

Space for Margins
Proper Organisation & Arrangement
Completeness, Accuracy & Clarity
Good Quality Papers.

Importance
Vital instrument in the successful
completion of all audit work
Guidance so as to the manner of
checking schedules
Fixing of responsibilities
Act as an evidence in the court
Act as the process of planning

Types of Files
Permanent File: usually contains
documents and matters of
importance of clients businesses
which will be required for more than
one audit.
Examples: Statutory documents
including name & address, legal
documents, internal controls,
organisational structure.

 Current File: contains documents that

are required for the current audit
period regarding the clients
business.
Examples: Copies of P&L a/c, trading
a/c, balance sheet, BRS, Inventory
valuation, etc.