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Systems and controls

5.2 Documenting client systems

Documentation
method Advantages Disadvantages

Narrative notes  Simple to record  Time consuming to
prepare and
 Facilitate understanding cumbersome if system is
by all audit staff complex

 Difficult to identify
missing controls

Flow charts  Easy to view the whole  Still a need for narrative
system notes

 Easy to spot missing  Difficult to amend
controls

Internal control  Quick to prepare  Controls may be
questionnaire overstated
 Can ensure all controls
are present  Unusual controls unlikely
to be included

Internal control  Controls less likely to be  Checklist may contain
evaluation overstated control objectives not
relevant to the client
 Quick to prepare
 Unusual risks and
control objectives may
not be identified

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