Audit Notebook and Audit Working Papers – Best study notes for 2022 Exam

Audit Notebook and Audit Working Papers

Audit Notebook

Meaning of Audit Notebook

The auditor or his clerk has to keep the audit register for another moment. During the audit, if any mistakes, malpractices, or irregularities are found, it has to be recorded in the register.

Advantages of Audit Notebook

1) Audit register is beneficial for the future because an audit registration can be used in case of future needs.

2) Audit register is also used in report writing at the end.

3) Audit register is also used as evidence in future times.

Disadvantages of Audit Notebook

1) Increases unnecessary clerical writing work.

2) If the register is not properly written, it can be used as evidence against the auditor in court.

3) If the register is not properly maintained it is not prepared carefully it affects the audit report.

AUDIT WORKING PAPERS

Meaning of Audit Working Papers

During the actual examination of accounts, the auditor or his clerk has to collect a lot of information, papers, and documents, called ‘audit documents. These documents are obtained from the concerned organization or the client to facilitate the audit work and for future reference.

These documents are prepared for the purpose of better audit work and to be a basis for further audits. It contains in-depth information about the customer’s business. It includes the following information and documents.

(1) Copies of Certificates
(2) Balances of important accounts
(3) Balance sheets
(4) Certificate of the responsible officer checking the balance of goods at the end of the year
(5) Certificate of Bank Balance
(6) Statement of amounts due or payable
(7) Copies of final accounts
(8) Borrower’s Sheet
(9) Creditor’s sheet
(10) Sheet of investment made
(11) Extracts from the Book of Chronicles
(12) Copies of important contracts
(13) Important objections and their answers and explanations given by the customer
(14) Customer’s correspondence with debtor and creditor
(15) Correspondence with important officials or other places

Purpose of Audit Working Papers

Accounting documents are the basis of the work done by the auditor or his clerk. Hence the following objectives are achieved.

(1) References become available for the future.

(2) They can be used as evidence in court.

(3) It shows the thoroughness of the work done by the clerk.

(4) Documents are the basis of the statement made in the audit report. Hence this report Increases reliability.

(5) Working papers reveal deficiencies in the internal control system.

(6) These documents are helpful to the clerk in further audits.

(7) Based on this, the work of the audit clerk can be controlled and coordinated.

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