chapter 3-1. chapter 3-2 chapter 3: documenting accounting information systems introduction why...

61
Chapter 3-1

Upload: irene-miggins

Post on 16-Dec-2015

248 views

Category:

Documents


6 download

TRANSCRIPT

Page 1: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-1

Page 2: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-2

Chapter 3:Documenting Accounting

Information Systems

Introduction

Why Documentation Is Important

Document and Systems Flowcharts

Process Maps and Data Flow diagrams

Other documentation tools

End-user Computing And Documentation

Page 3: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-3

Why Documentation Is Important

1. Depicting how the system works.

2. Training users.

3. Designing new systems.

4. Controlling system development and

maintenance costs.

5. Standardizing communications with others.

Page 4: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-4

6. Auditing AISs.

7. Documenting business processes.

8. Complying with the Sarbanes-Oxley Act of

2002.

9. Establishing accountability.

Why Documentation Is Important

Page 5: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-5

Example Flowchart

Page 6: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-6

Document and System Flowcharts

Document Flowcharts Traces the physical flow of documents through an

organization Used to analyze systems for weaknesses in

controls and reports Begins by identifying departments and groups

that handle the documents

Page 7: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-7

Common Document Flowcharting Symbols

Page 8: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-8

Common Document Flowcharting Symbols

Page 9: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-9

A Sample Document Flowchart

Page 10: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-10

A Sample Document Flowchart

Page 11: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-11

Guidelines for Drawing Document Flowcharts

Identify all departments involvedClassify documents and activities by departmentIdentify documents by numbers or colorAccount for the distribution of each copy of a document.

Page 12: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-12

Use on-page and off-page connectorsCoordinate connectors by letter or numberAnnotate unclear activitiesIdentify filing sequence when necessaryAvoid acronyms that could cause confusionConsider automated flowchart tools

Document Flowcharting Guidelines

Page 13: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-13

The diagram here is most likely a:

A.Document flowchart

B.System flowchart

C.Data flow diagram

D.Program flowchart

Study Break #1

Page 14: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-14

The diagram here is most likely a:

A.Document flowchart

B.System flowchart

C.Data flow diagram

D.Program flowchart

Study Break #1 - Answer

Page 15: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-15

In the diagram, the arrow represents:

A.A wireless transmission

B.A telephone call

C.An information flow

D.A management order to a subordinate

Study Break #2

Page 16: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-16

Document and System Flowcharts

System Flowcharts Utilize standardized symbols Processes typically involve preparing control

reports Depict electronic job stream of data Illustrate an audit trail through AIS

Page 17: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-17

Common System Flowchart Symbols

Page 18: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-18

Common System Flowchart Symbols

Page 19: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-19

System Flowchart - Payroll Processing

Page 20: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-20

System Flowcharting Guidelines

Arrange to read from top to bottom andleft to right

Use standardized symbols

There must be a process symbol separating an input and output symbol (Sandwich rule)

Page 21: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-21

Use on-page and off-page connectors

Sketch a flowchart before designing the final draft

Use annotated descriptions and comments in flowcharts for clarification

Systems Flowcharting Guidelines

Page 22: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-22

System Flowchart Example

Page 23: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-23

System Flowchart Example (continued)

Page 24: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-24

Which of the following is not true about system flowcharts?

A.They can depict the flow of information in a computerized AIS

B.They use standardized symbols

C.They cannot show how documents flow in an AIS

D.They often document an audit trail

Study Break #3

Page 25: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-25

Which of the following is not true about system flowcharts?

A.They can depict the flow of information in a computerized AIS

B.They use standardized symbols

C.They cannot show how documents flow in an AIS

D.They often document an audit trail

Study Break #3 - Answer

Page 26: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-26

The sandwich rule states that:

A.You should only create logic diagrams that have some “meat” in them

B.Every diagram should have a cover page and a summary page

C.A processing symbol should be between an input and an output symbol

D.In DFDs, there should always be data flow lines leading to and from files

Study Break #4

Page 27: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-27

The sandwich rule states that:

A.You should only create logic diagrams that have some “meat” in them

B.Every diagram should have a cover page and a summary page

C.A processing symbol should be between an input and an output symbol

D.In DFDs, there should always be data flow lines leading to and from files

Study Break #4 - Answer

Page 28: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-28

Process Maps

Document business processes in easy-to-follow diagrams.

Auditing uses: Understand operations Document understanding Identify internal control problems

Page 29: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-29

Process Map - Order Fulfillment Process

Page 30: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-30

A Second-level Process Map

Page 31: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-31

Guidelines for Drawing Process Maps

Identify and define the process of interest

Understand the purpose for the process map

Meet with employees to acquire input

Remember that processes have inputs, outputs, and enablers

Page 32: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-32

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 Drawing Process Maps

Page 33: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-33

Uses Used in systems development process Tool for analyzing an existing system

Types Context Physical Logical

Data Flow Diagrams

Page 34: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-34

Data Flow Diagrams Symbols

Page 35: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-35

Types of DFDs

Context Diagrams Overview of the system High-level

Physical Data Flow Diagrams Focuses on the physical entities of organization

Logical Data Flow Diagrams Emphasizes tasks of participants

Page 36: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-36

Context Diagram

Page 37: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-37

Physical Data Flow Diagrams

Resemble document flowcharts

Focus on physical entities, tangible documents, and reports flowing through the system

List job titles of employees

Simple, more readable, and more easily understood

Page 38: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-38

Physical Data Flow Diagrams

Page 39: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-39

Logical Data Flow Diagrams

Identifies what participants do

Bubble indicates a task the system performs

Help designers decide: System resources to acquire Activities employees must perform How to protect and control these systems

Page 40: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-40

Logical Data Flow Diagrams

Page 41: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-41

Decomposition

Exploding data flow diagrams to create more detail

Level 0 data flow diagrams Exploded into successive levels of detail (3.0 – Process

Paycheck)

Level 1 data flow diagrams 3.1 – Compute gross pay 3.2 – Compute payroll deductions

Page 42: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-42

Decomposition – Exploded View of 3.0 (Process

Paycheck)

Page 43: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-43

Guidelines for Drawing DFDs

Avoid detail in high level DFDs

Approximately five to seven processes in each Logical DFD

Different data flows should have different names

All data stores have data flows into and out of them

Include temporary files

Page 44: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-44

Final recipients of system information are external entities

Personnel and departments processing data of the current system are internal entities

Display only normal processing routines inhigh-level DFDs

Use only one entity to represent several system entities that perform the same task

Guidelines for Drawing DFDs

Page 45: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-45

Program Flowcharts

Outline the processing logic for computer programsIndicates the order of processing stepsStructured Walk-Through Formal review of logic Assess the soundness of the logic Detect and correct design flaws Make improvements

Macro Program Flowchart provides an overview of the data processing logic

Page 46: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-46

Program Flowchart

Page 47: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-47

Decision Tables

Matrix of conditions and processing tasks

Indicate what action to take for each possibility

Used when computer program involves many conditions and subsequent courses of action

Used as an alternative to program flowcharts or in addition to the flowcharts

Page 48: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-48

Decision Tables

Page 49: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-49

Do not show order in which a program tests data conditions or takes processing actions

Require documentation understanding beyond flowcharting

Requires extra work to prepare

Drawbacks of Decision Tables

Page 50: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-50

Which of the following is not true about process maps?

A.They depict the flow of information in computerized AISs

B.They use standardized symbols

C.Government agencies as well as businesses often use them

D.Web pages often depict hierarchical versions of them

Study Break #5

Page 51: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-51

Which of the following is not true about process maps?

A.They depict the flow of information in computerized AISs

B.They use standardized symbols

C.Government agencies as well as businesses often use them

D.Web pages often depict hierarchical versions of them

Study Break #5 - Answer

Page 52: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-52

A decision table shows:

A.The possible conditions and processing alternatives for a given situation

B.Who sat where at a board meeting

C.The rules for drawing DFDs

D.The local outsourcing vendors in the area for documentation tasks

Study Break #6

Page 53: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-53

A decision table shows:

A.The possible conditions and processing alternatives for a given situation

B.Who sat where at a board meeting

C.The rules for drawing DFDs

D.The local outsourcing vendors in the area for documentation tasks

Study Break #6 - Answer

Page 54: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-54

Software Tools for Graphical Documentation and SOX

Compliance

Microsoft Word, Excel, and PowerPoint

CASE Tools

SOX Compliance Software

Page 55: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-55

CASE Tools

Computer-Assisted Software EngineeringAutomate documentation tasksExamples include:

iGrafx allCLEAR SmartDraw Visio

Page 56: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-56

CASE Tool--ExceleratorTM

Page 57: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-57

End-User Computing

Non-IT employees create their own computer applications

Important of documentation: Require training manuals and reference guides Identify how to accomplish and undo actions Greater efficiency when altering system

Page 58: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-58

Documentation Information

Page 59: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-59

Policies for End-User Computing and Documentation

1. Formally evaluate large projects

2. Adopt formal end-user development policies

3. Formalize documentation standards

4. Limit the number of employees authorizedto create end-user applications

5. Audit new and existing systems

Page 60: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-60

Copyright

Copyright 2010 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 theexpress written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchasermay 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.

Page 61: Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts

Chapter 3-61

Chapter 3