During the course of an audit, an auditor has to make several queries which might not have been satisfactorily answered, he might have taken down the totals of different books of account, and certain other points which he would like to incorporate in his audit report. Lest he might forget these points, he notes them down in a book which is called an Audit Note Book. This book is sometimes called Memoranda Book. It may be a bound or loose-leaf book.
“Audit Note Book is a register maintained by the audit staff to record important points observed, errors, doubtful queries, explanations, and clarifications to be received from the clients.” This notebook also has specific information relating to the daily functions of the audit clerks. Precisely, it is a compulsory note book where a wide variety of things observed during the audit are noted or recorded. An auditor should maintain it systematically, clearly, and completely. Because this notebook can protect him against any legal charge of negligence. Undoubtedly, it helps the auditor immensely to prepare the audit report. Again, this Audit Note Book serves as a guide to conduct the audit for the coming years.