Audit note book advantages and disadvantages

Advantages of Audit Note Book

•  Audit note book enables the auditor to record important points, which arise during the course of his audit; otherwise he might forget these points.

• An auditor can produce this book as a documentary evidence in a suit filed against him for negligence or misfeasance.

•  It facilitates the preparation of the audit report.

• If the assistant in charge is changed before the completion of a particular work, it acts as a guide and makes the completion of balance work easier.

• A credit note book makes the work of audit convenient because all the important details about audit can be recorded in this book and, as such, any change in the staff of the auditor does not disturb or dislocate the work of audit.

• It can help in making an assessment of the work of audit clerks.

• It provides a key to evaluate the efficiency of the audit staff.

Disadvantages of Audit Note Book

• Very often, it creates misunderstanding between the client staff and the audit staff.

• If it is not properly and carefully prepared it cannot be used as evidence against the auditor for negligence.

• It develops a fault finding attitude in the minds of the staff of the audit.

• Audit staff has to depend too much upon the client’s staff for its preparation.