Audit note book is prepared with the following objectives:
1. To know about the nature of business i.e regarding provision of memorandum, articles of association etc.
2. Not to leave any errors and frauds which helps to make audit more effective and efficient.
3. To make the future audit work easier. Auditor can get information regarding nature of business from previous audit note book.
4. To check the list of debtors and creditors so that false list can be detected.
5. To know about the facts where clarification and explanation are essential.
6. To present as proof by the auditor to get clearance over the cases if auditor has been accused for misfeasance and negligence.
7. To assure the audit of major function or items of the business where there are chances of frauds and errors