ch03

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Chapter3-1

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Chapter3-2

Chapter 3Documenting Accounting

Information Systems

Introduction

Why Documentation Is Important

Document and Systems Flowcharts

Process Maps and Data Flow diagrams

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Chapter3-3

Chapter 3Documenting Accounting

Information Systems

Other documentation tools

End-user Computing And Documentation

AIS at workflowcharts help recoverembezzled assets

Summary

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Chapter3-4

Documentation of Systems

Documentation is a vital part of any AIS.

Accountants use many different types of

diagrams to trace the flow of accounting

data through an AIS.

A wide variety of software is

available for documenting AISs.

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Chapter3-5

Why Documentation IsImportant

Depicting how the system works

Training users

Designing new systems

Controlling system development

and maintenance costs

Standardizing communications

with others

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Chapter3-6

Auditing AISs

Documenting business processes

Complying with the Sarbanes

Oxley Act of 2002

Establishing accountability

Why Documentation IsImportant

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Chapter3-7

Types of Flowcharts

Document Flowcharts

Document flowchart traces the physical

flow of documents through an organization.

Systems Flowcharts

System flowchartsdepict the electronic flow

of data and processing steps in an AIS.

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Chapter3-8

Document Flowcharts

Constructing a document flowchart beginsby identifying the different departments or

groups that handle the documents of aparticular system.

Auditors and accountants may use

document flowcharts whenanalyzing a current system forweaknesses in controls and reports.

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Chapter3-9

Keying operation

Document

Multiple copies of

a specific document

Manual Operation

Connector between

two points on a

flowchart

Journal or ledger

Common DocumentFlowcharting Symbols

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Chapter3-10

Permanent file of

manual documents

Information flow

Document flow

Annotation for

additional

explanation

Envelope

for mailing

or distributing

bills or checks,

etc.

Adding machine

tape used for

batch control

Common DocumentFlowcharting Symbols

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Chapter3-11

A Sample Document Flowchart

Requesting Department Central Supplies Department

PRF

A

A

PRF

1 2

File

1

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Chapter3-12

Document FlowchartingGuidelines

Identify all departments involved

Classify activities department-wise.

Identify documents by numbers orcolor-coding.

Account for the distribution of every

copy of a document.

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Chapter3-13

Use on-page and off-page connectorsand connect by using same letter or

number.Annotate document for clarity.

Consider sequencing whenever important.

Avoid acronyms to avoid confusion.Consider using automated flowchart tools.

Document FlowchartingGuidelines

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Chapter3-14

System Flowcharts

They use symbols that are industry conventions

standardized by the National Bureau of

Standards.Each processing phase of a system flowchart

usually involves preparing one or more control

reports.

These flowcharts depict an electronicjob stream

of data through processing phases of an AIS, and

therefore illustrate audit trails.

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Chapter3-15

Common System FlowchartSymbols

On-line keying

Screen Display

Input/Output

Document

Computer Processing

On-line Storage

Communication

Link

Magnetic

Disk

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Chapter3-16

System Flowchart Preparinga Payroll

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Chapter3-17

Systems FlowchartingGuidelines

Arrange to read from top to bottom and

left to right.

Use appropriate, standard symbols.

Always use a process symbol between an

input and an output symbol. This is called

the sandwich rule.

Use connectors to avoid crossed

lines and cluttered flowcharts.

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Chapter3-18

Sketch a flowchart before designing the final

draft.

Use annotated descriptions and comments in

flowcharts for clarification.


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Chapter3-19

The sandwich rulestates that:a. You should only create logic diagrams that have

some meat in themb. Every diagram should have a cover page and a

summary pagec. A processing symbol should be between an input and

an output symbold. In DFDs, there should always be data flow lines

leading to and from files

Question


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Chapter3-20

Process Maps and DataFlow Diagrams

Process maps document business processes in

easy-to-follow diagrams.

Data flow diagrams (DFDs) are primarily used

in the systems development process as a tool for

analyzing an existing system.

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Chapter3-21

Process Map for the OrderFulfillment process

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Chapter3-22

A Second-level Process Map

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Chapter3-23

Guidelines for DrawingProcess Maps

Identify and define the process of interest to

stay focused.

Understand the purpose for the process map.

Meet with employees to get their ideas,

suggestions, and comments.

Remember that processes have inputs, outputs,

and enablers.

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Chapter3-24

Show key decision points.

Pay attention to the level of detail you capture.

Avoid mapping the should-be or could-be.

Map what is.

Practice, practice, practice.

Guidelines for DrawingProcess Maps

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Chapter3-25

Data Flow DiagramsSymbols used

A square represents an external data

source or data destination.

A circle indicates a internal entity thatchanges or transforms data.

Two horizontallines represent the storage

of data. This is usually a file.

A line with an arrow indicates the

direction of the flow of data.

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Chapter3-26

Parts of the DFD

Context diagram an overview of the system

Physical Data Flow Diagramsfirst level of

detail

Logical Data Flow Diagramsidea of what

participants do

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Chapter3-27

Context diagram

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Chapter

3-28

Context Diagrams

Data flow diagramsare usually drawn in

levels that include increasing amounts of detail.

A top level (or high-level) DFD that providesan overall picture of an application or system is

called a context diagram.

A context diagramis then decomposed,or exploded, into successively lower

levels of detail.

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Chapter

3-29

Physical Data Flow Diagrams

Resemble the document flowcharts

Focus on physical entities as well as the

tangible documents, reports, and similar hard-

copy inputs and outputs that flow through the

system

List the job title of one typical employee

Are simple, more readable, and therefore

more easily understood

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Chapter

3-30

Physical Data Flow Diagrams

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Chapter

3-31

Logical Data Flow Diagrams

Decompose DFDs into successive levels

Address what participants do.

Consist of bubbleseach bubble contains a verb thatindicates a task the system performs.

Help designers decide

what system resources to acquire,

what activities employees must perform to run these

systems, and

how to protect and control these systems after installation.

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Chapter

3-32

Logical Data Flow Diagrams

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Chapter

3-33

Decomposition

Is the act of exploding data flow diagrams to

create more detail.

Level 0 data flow diagrams may be exploded intosuccessive levels of detail. The next level of detail

would be a level 1 data flow diagram.

The DFDs become linked together ina hierarchy, which would fully

document the system.

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Chapter

3-34

Decomposition

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Chapter

3-35

Guidelines for Drawing DFDs

Avoid detail in high level DFDs.

Ensure that between five and seven

processes are in each DFDGive different data flows different names.

Ensure all data stores have data flows both into

them and out of them.Include even temporary files in a DFD.

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Chapter

3-36

Classify most of the final recipients of system

information as external entities.

Classify personnel and departments that processthe data of the current system as internal entities.

Display only normal processing routines in

high-level DFDs.

Use only one entity to represent several

system entities that perform the same

task,


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Chapter

3-37

Which of these is nota good guideline to follow when creatingDFDs?

a. Avoid detail in high-level DFDs

b. Avoid drawing temporary files in DFDs

c. Classify most of the final recipients of system outputs

as external entities

d. Avoid showing error routines or similar exception

tasks

Question


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Chapter

3-38

Other Documentation Tools

Program flowchartsOrganizations use structured programmingtechniques to

create large computer programs in a hierarchical fashion

Decision tablesOrganizations use a table of conditions and processingtasks that indicates what action to take for each possibility.

Software Tools for Graphical

documentation and SOX complianceMicrosoft Word, Excel, and PowerPoint

CASE Tools

SOX Compliance

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Chapter

3-39

Program flowcharts

outline the processing logic

indicate the order of processing steps

present the steps in a structuredwalk-through whichhelps the reviewers assess the soundness of the logic,

detect and correct design flaws, and

make improvements

macro program flowchartsserve as an overview of

the data processing logic

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Chapter

3-40

Program flowcharts

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Chapter

3-41

Question

The diagram here is most likely a:

a. document flowchart

b. system flowchart

c. data flow diagram

d. program flowchart

Flowcharts

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Chapter

3-42

Decision Tables

A decision tableis a matrix of conditions and processing tasks that

indicate what action to take for each possibility,is used when the computer program involves many

conditions and subsequent courses of action,

is used as an alternative to program flowcharts or in

addition to the flowcharts.

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Chapter

3-43

The drawbacks of a decision table arethey do not show the order in which a program

tests data conditions or takes processing actionsrequire an understanding of documentation

techniques beyond flowcharting

require extra work to prepare, which may not

be cost effective

Decision Tables

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Chapter

3-44

Decision Tables

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Chapter

3-45

Software Tools for Graphical

documentation and SOX compliance

Microsoft Word, Excel, and PowerPoint

All the programs have the AutoShapes option for the graphic

symbols and logic diagrams

Excel can create large drawings and has the option to embedcomputed values in flowcharting symbols.

CASE Tools

Has capabilities of graphical documentation software that exceed

those of word-processing or spreadsheet packages.SOX Compliance Software

Enable businesses to reduce the time and costs required to satisfy

Sarbanes Oxley Act of 2002 requirements.

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Chapter

3-46

CASE Tools

CASE is an acronym for

computer-assisted software engineer ing.

CASE tools automate costly, inefficient, slowdocumentation tasks.

CASE tools can reduce the time and cost to

produce high-quality documentation for

new systems, thus supporting rapidapplication development (RAD).

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Chapter

3-47

CASE Tool--ExceleratorTM

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Chapter

3-48

End-User Computing

End-user computingrefers to the ability of non-IT employees

to create their own computer applications,is important for end-users to document

applications they develop.

f d

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Chapter

3-49

Importance of End-UserDocumentation

End users require complete, easy-to-follow

training manuals, tutorials, and reference

guides.Documentation is important for learning how

to accomplish things or undo mistakes.

Documentation is also important for endusers as time is wasted when other employees

need to alter a system but lack the basic

documentation to accomplish this task.

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Chapter

3-50

Policies for End-User Computingand Documentation

1. Formally evaluate large projects.

2. Adopt formal end-user development policies.

3. Formalize documentation standards.

4. Limit the number of employees authorized

to create end-user applications.

5. Audit new and existing systems.

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Chapter

3-51

Question

A meeting in which computer programmers outline theirlogic to others is called a:

a. Decision meeting

b. RAD meeting

c. mythical event

d. structured walkthrough

Computing

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Chapter

3-52

Copyright

Copyright 2008 John Wiley & Sons, Inc. All rights reserved.

Reproduction or translation of this work beyond that permitted in

Section 117 of the 1976 United States Copyright Act without the

express written permission of the copyright owner is unlawful.Request for further information should be addressed to the

Permissions Department, John Wiley & Sons, Inc. The purchaser

may make backup copies for his/her own use only and not for distribution

or resale. The Publisher assumes no responsibility for errors, omissions,

or damages, caused by the use of these programs or from the use of the

information contained herein.

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Chapter

Chapter 3

ch03

Documents