AUDIT BY JENIKA SOLANKI

NOTEBOOK 135- TYBBI

MEANING
 It is a note book maintained by the auditor for recording a large variety of
matters observed during the course of audit.
 It contains errors, difficulties, doubtful queries of various accounting records.
 It defends the auditor if legal action is initiated against him.
(authentic evidence in the court of law)
 It is also called as Audit Memoranda.
 It may be in the form of register or loose sheets filed together.
STRUCTURE OF
AUDIT NOTEBOOK

Audit Notebook

For keeping a record For recording special points

of general which have been observed
information as during the course of audit of
regards the audit as a the accounts of particular
whole. years.
CONTENTS OF AUDIT
NOTEBOOK
GENERAL INFORMATION
 The nature of the business carried on &
the important documents relating to the
constitution of the business.
 The name of the client & the audit year.
 Audit plan & programme.
 Analysis of transactions & balances.
 Record of audit procedures & their results.
 Management representations.
SPECIAL MATTERS
 Information regarding legal & organisational
structure of the organization.
 Extracts of important legal documents,
agreements, etc.
 Routine queries not cleared.
 Details of mistakes & errors discovered.
 Analysis of significant ratios & trends.
 Copies of management letters issued by the
auditors.
ADVANTAGES OF AUDIT
NOTEBOOK
 Facilitates audit work
 Preparation of audit report
 Serves as documentary evidence
 Serves as a guide
 Evaluating work of audit staff
 Fixation of responsibility
 No dislocation of audit work
Fault finding attitude

Misunderstanding

Improper preparation DISADVANT

AGES OF
Adverse effects on subsequent audits
AUDIT
Not suitable for small firms NOTEBOOK
Lack of initiative

Lack of flexibility
THANKYOU