ACCA Audit and Assurance (F8) Practice Exam

What is a disadvantage of using narrative notes for recording client's systems?

1. Easy to use

2. Can support multiple methods

3. Difficulty in updating

4. Fast to prepare

The correct answer is: Difficulty in updating

The choice indicating 'Difficulty in updating' accurately reflects a significant disadvantage of using narrative notes for recording a client's systems. Narrative notes typically provide a descriptive account of processes and systems, which means they can become lengthy and complex. As changes occur within the client's operations or systems, updating these narrative notes can be cumbersome and time-consuming. This challenge can lead to outdated or inaccurate representations of the client's systems if the notes are not regularly reviewed and revised. In contrast, other options highlight characteristics that are generally seen as advantages. For instance, narrative notes are known for being easy to use, as they are straightforward and understandable. Additionally, they can support multiple methods of documentation or analysis due to their flexible nature. Finally, narrative notes can be fast to prepare initially, which makes them appealing for articulating processes quickly. However, these advantages do not mitigate the critical issue of maintainability and accuracy over time, underscoring the importance of considering the implications of using narrative notes in recording systems.