In an audit of a small company, a narrative memorandum may serve as the only documentation of the auditor's understanding of internal controls.

Name: In an audit of a small company, a narrative memorandum may serve as the only documentation of the auditor's understanding of internal controls.
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In small companies, auditors may use a narrative memorandum to document their understanding of the company's internal control system, especially when the system is simple enough to be described in narrative form.

In an Audit of a Small Company, a Narrative Memorandum