You'd have to ask an NFPA 13 committee member, but my guess is it is assumed that the type or location of the alarm is not critical.. As long as it sounds when the water flows I would interpret that the code is met.
Ideally it should be located outside so the fire department can find the riser.
Interpretive language from the handbook (somewhat relevant to your question):
"Paragraph 8.17.1.1 requires an audible waterflow alarm on the premises for all systems that have more than 20 sprinklers. The systems are not required to have supplemental alarm systems. The standard does require alarm supervision of valves controlling sprinkler systems
with non-fire protection connections and recommends, but does not require, such supervision in other instances.
The sprinkler alarms are waterflow alarms and are not building evacuation alarms. However, in some applications, building owners can choose to react to waterflow alarms as
evacuation alarms. The purpose for which the alarm is intended should be considered in the required waterflow overall design of both actuating mechanisms and audible alarm devices."