Why is documentation critical in business analysis?

Documentation plays a crucial role in business analysis primarily because it prevents miscommunication of requirements. Clear and comprehensive documentation serves as a reference point for all stakeholders involved in a project — including business analysts, project managers, developers, and end-users. It ensures that everyone has a shared understanding of the expectations, needs, and requirements. This clarity helps in setting accurate project goals and outcomes, minimizing the risks of misunderstandings which can lead to costly reworks, delays, and project failures.

Moreover, well-documented requirements serve as a contract between stakeholders and the development team, preventing scope creep by clearly delineating what is included in the project. This ensures that the project delivers what is intended, aligning with stakeholder expectations and enhancing overall satisfaction.

While documentation can also have benefits related to auditing and maintaining a historical record (as highlighted by one of the other options), its primary value lies in establishing a common understanding of requirements that drives project success.