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A record used chiefly in recording audits, containing data on work done and comments outside of the regular subject

matter of working papers. It contains such items as audit programme, notificatations showing , how sections of the audit are carried out during successive examinations, information needed for the auditor and for staff administration, time requirement etc, it may be part of permanent file. It defends the auditor if legal action is initiated against him( authentic evidence in the court of law)

 It can be a part of auditor’s permanent record.  Also consists of matters for which client has not provided satisfactory answers.

Two parts of audit note book
 1) for keeping record of general information regarding

audit
 2) For recording special points found by staff

Objectives of audit notebook
1.
2. 3. 4. 5.

Facilitates future audit Documentary evidence Helps in preparing audit report Settlement of audit queries Evaluation of work

Special matters to be recorded in the audit note book
        

Routine queries not cleared Details of mistakes and errors discovered Points to be told to auditor by client Point to be included in audit report Point which need further clarification Future reference points Starting and completion date of audit Technical terms used in business Accounting method followed

Advantages
It helps and ensures  Exact volume of work done by assistants  Future reference and guide  Facilitates preparation of audit report  Helps continue incomplete work  Reliable evidence  Follows audit programme  Places responsibility for errors  Recalls important matters

Audit memorandum
 Statement containing useful info regarding business
 Indicates method of operation, policies of business  Useful for first time audit