Can Anyone Explain Narrative Description Method In Internal Control Auditing?

The basic objective of internal control is to protect the assets of business entry. Narrative description is a method of internal control. The auditor can know and record the internal control system. The information is collected and compiled in narrative form relating to accounting and administration. The observation and discussion with management on every aspect of business can be recorded.

There must be some sort of procedures for recording the information. The system, its number and operation with data can be recorded at the top of the page. Every operation with data can be stated sequence wise with number for future use and reference. The symbols may be used to make distinction between one work and another. The identification of controls is facilitated due to complete narration in the form.

The narrative description must be complied properly. The full details should be available. It should be cross reference for future us. It should be understandable for subsequent audit. It becomes easy to identify controls within the systems. The narrative description requires too much time. The information collected is very lengthy. There may be contradiction in the description. The employees may conceal important information. There may be omission relevant points.