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 2

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. 4

4. Why Documentation Is Important
6. Auditing AISs.
7. Documenting business processes.
8. Complying with the Sarbanes-Oxley Act of
2002.
9. Establishing accountability. 4

5. Example Flowchart 4

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

7. Common Document Flowcharting Symbols7

8. Common Document Flowcharting Symbols8

9. A Sample Document Flowchart9

10. A Sample Document Flowchart9

11. Guidelines for Drawing Document Flowcharts
Identify all departments involved
Classify documents and activities by department
Identify documents by numbers or color
Account for the distribution of each copy of a document. 12

12. Document Flowcharting Guidelines
Use on-page and off-page connectors
Coordinate connectors by letter or number
Annotate unclear activities
Identify filing sequence when necessary
Avoid acronyms that could cause confusion
Consider automated flowchart tools 12

13. Study Break #1 The diagram here is most likely a: Document flowchart
System flowchart
Data flow diagram
Program flowchart

14. Study Break #1 - Answer The diagram here is most likely a:
Document flowchart
System flowchart
Data flow diagram
Program flowchart

15. Study Break #2 In the diagram, the arrow represents:
A wireless transmission
A telephone call
An information flow
A management order to a subordinate

16. Document and System Flowcharts
Utilize standardized symbols
Processes typically involve preparing control reports
Depict electronic job stream of data
Illustrate an audit trail through AIS 10

17. Common System Flowchart Symbols

18. Common System Flowchart Symbols

19. System Flowchart - Payroll Processing11

20. System Flowcharting Guidelines
Arrange to read from top to bottom and left to right
Use standardized symbols
There must be a process symbol separating an input and output symbol (Sandwich rule) 12

21. Systems Flowcharting Guidelines
Use on-page and off-page connectors
Sketch a flowchart before designing the final draft
Use annotated descriptions and comments in flowcharts for clarification 13

22. System Flowchart Example

23. System Flowchart Example (continued)

24. Study Break #3
Which of the following is not true about system flowcharts?
They can depict the flow of information in a computerized AIS
They use standardized symbols
They cannot show how documents flow in an AIS
They often document an audit trail

25. Study Break #3 - Answer
Which of the following is not true about system flowcharts?
They can depict the flow of information in a computerized AIS
They use standardized symbols
They cannot show how documents flow in an AIS
They often document an audit trail

26. Study Break #4 The sandwich rule states that:
You should only create logic diagrams that have some “meat” in them
Every diagram should have a cover page and a summary page
A processing symbol should be between an input and an output symbol
In DFDs, there should always be data flow lines leading to and from files

27. Study Break #4 - Answer The sandwich rule states that:
You should only create logic diagrams that have some “meat” in them
Every diagram should have a cover page and a summary page
A processing symbol should be between an input and an output symbol
In DFDs, there should always be data flow lines leading to and from files

28. Process Maps Document business processes in easy-to-follow diagrams.
Auditing uses:
Understand operations
Document understanding
Identify internal control problems 15

29. Process Map - Order Fulfillment Process16

30. A Second-level Process Map16

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 16

32. Guidelines for Drawing Process Maps
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 16

33. Data Flow Diagrams Uses Used in systems development process
Tool for analyzing an existing system
Types
Context
Physical
Logical 16

34. Data Flow Diagrams Symbols16

35. Types of DFDs Context Diagrams Physical Data Flow 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 17

36. Context Diagram 18

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 22

38. Physical Data Flow Diagrams22

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 23

40. Logical Data Flow Diagrams23

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 24

42. Decomposition – Exploded View of 3.0 (Process Paycheck)24

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 25

44. Guidelines for Drawing DFDs
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 in high-level DFDs
Use only one entity to represent several system entities that perform the same task 26

45. Program Flowcharts Outline the processing logic for computer programs
Indicates the order of processing steps
Structured 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

46. Program Flowchart 29

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 30

48. Decision Tables 30

49. Drawbacks of Decision Tables
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 30

50. Study Break #5 Which of the following is not true about process maps?
They depict the flow of information in computerized AISs
They use standardized symbols
Government agencies as well as businesses often use them
Web pages often depict hierarchical versions of them

51. Study Break #5 - Answer
Which of the following is not true about process maps?
They depict the flow of information in computerized AISs
They use standardized symbols
Government agencies as well as businesses often use them
Web pages often depict hierarchical versions of them

52. Study Break #6 A decision table shows:
The possible conditions and processing alternatives for a given situation
Who sat where at a board meeting
The rules for drawing DFDs
The local outsourcing vendors in the area for documentation tasks

53. Study Break #6 - Answer A decision table shows:
The possible conditions and processing alternatives for a given situation
Who sat where at a board meeting
The rules for drawing DFDs
The local outsourcing vendors in the area for documentation tasks

54. Software Tools for Graphical Documentation and SOX Compliance
Microsoft Word, Excel, and PowerPoint
CASE Tools
SOX Compliance Software 30

55. CASE Tools Computer-Assisted Software Engineering
Automate documentation tasks
Examples include:
iGrafx
allCLEAR
SmartDraw
Visio 31

56. CASE Tool--ExceleratorTM30

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 33

58. Documentation Information33

59. Policies for End-User Computing and Documentation
Formally evaluate large projects
Adopt formal end-user development policies
Formalize documentation standards
Limit the number of employees authorized to create end-user applications
Audit new and existing systems 34

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61. Chapter 3 36