What it is
A process narrative describes how a transaction flows from start to the general ledger, who does what, which systems are involved and where the controls sit. Auditors and testers use it to understand the process and to identify the controls to test.
This one is set up for procure to pay, with sample steps from requisition to period-end accrual. Replace the steps with the process as it runs and cross-reference the control IDs in the risk and control matrix.
When to use it
- When documenting the purchasing and payables process for ICFR.
- When the process or system changes.
- To prepare for a walkthrough with the auditor.
What’s inside
- Overview, roles and systems
- Seven sample steps with documents and control references
- Risks, controls and information used in controls
- Exceptions, changes and sign-off
Standard cited
This template follows COSO 2013 / ICFR documentation. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
How detailed should a narrative be?
Detailed enough that someone who does not work in the process can see how a transaction moves, where it is approved and where a control operates. Walk through one real transaction to check it.
Does it replace a flowchart?
No, they work together. Number the steps in the narrative to match the flowchart, using the symbols in the flowchart legend.
Related templates
- Risk and Control Matrix: Procure to Pay
- Process Flowchart Legend and Conventions
- SOX Control Narrative (ICFR)
- Process Narrative: Order to Cash
Last updated 11/05/2026. All free templates.