Presentation is loading. Please wait.

Presentation is loading. Please wait.

2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 1 SYSTEMS TECHNIQUES AND DOCUMENTATION.

Similar presentations


Presentation on theme: "2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 1 SYSTEMS TECHNIQUES AND DOCUMENTATION."— Presentation transcript:

1

2 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 1 SYSTEMS TECHNIQUES AND DOCUMENTATION

3 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 2 Learning Objective 1 Characterize the use of systems techniques by auditors and systems development personnel.

4 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 3 Users of Systems Techniques Systems techniques are tools. They are largely graphical (pictorial) in nature. AnalysisDesignDocumentation

5 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 4 Use of Systems Techniques in Auditing What are the two basic components of an auditing engagement? 1. The interim audit Compliance testing 2. The financial statement audit Substantive testing

6 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 5 Internal Control Evaluation Auditors are typically concerned with the flow of processing and distribution of documents within an application system. Auditors use charts to analyze the distribution of documents in a system.

7 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 6 Compliance Testing Compliance testing requires an understanding of the controls that are to be tested. Auditors must have a basic understanding of systems techniques. – input-process-output (IPO) – hierarchy plus input-process-output (HIPO) – logical data flow diagrams (DFD)

8 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 7 Working Papers Required by professional standards These are the records kept by an auditor of the procedures and tests applied, the information obtained, and conclusions drawn during an audit engagement.

9 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 8 Working Papers What are some of the systems techniques used by auditors to document and analyze the content of working papers? – internal control questionnaires – analytic flowcharts – system flowcharts – branching and decision tables

10 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 9 Use of Systems Techniques in Systems Development What are the three phases of a systems development project? 1. Systems analysis 2. Systems design 3. Systems implementation

11 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 10 Systems Analysis Much of a systems analysts job involves collecting and organizing facts. Systems techniques examples: Interviewing Document reviews Observations Matrix

12 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 11 Systems Design A blueprint must be formulated for the complete system. Input/output (matrix) analysis Systems flowcharting Data flow diagrams

13 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 12 Systems Implementation Systems implementation involves the actual carrying out of the design plan. What systems techniques serve as a documentation tool? Program flowcharts Decision tables

14 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 13 Learning Objective 2 Describe the use of flowcharting techniques in the analysis of information processing systems.

15 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 14 Systems Techniques What is a flowchart? A flowchart is a symbolic diagram that shows the data flow and sequence of operations in a system.

16 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 15 Basic Symbols Input/output Process Annotation Flowline

17 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 16 Specialized Input/Output Symbols Punchedcard Onlinestorage Magneticdisk Magnetictape Punchedtape

18 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 17 Specialized Input/Output Symbols Document Manualinput Display Offlinestorage Communicationlink

19 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 18 Specialized Process Symbols Decision Predefinedprocess Preparation Manualoperation Auxiliaryoperation Merge Extract Sort Collate

20 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 19 Additional Symbols Parallel mode Transmittal tape Connector Off-pageconnector Terminal

21 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 20 Symbol Use in Flowcharting Symbols are used in a flowchart to represent the functions of an information or other type of system. Normal direction of flow is from left to right and top to bottom. Open arrowheads should be used on reverse-direction flowlines.

22 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 21 Symbol Usage Illustration Invoice Normal Direction of Flow Reviewandapprove Approvedinvoice

23 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 22 Symbol Usage Illustration Reverse Flow Shown with Arrowheads Invoice Reviewandapprove Approvedinvoice

24 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 23 Symbol Usage Illustration Use of Connector Symbol Approvedinvoice AStoresInvoice APurchasing

25 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 24 Symbol Usage Illustration Bidirectional Flow Shown with Arrowheads Requisition Vendorfiles Prepare purchase order and update vendor files Purchaseorder

26 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 25 Learning Objective 3 Define common systems techniques, such as HIPO charts, systems flowcharts, and logical data flow diagrams.

27 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 26 IPO and HIPO Charts These charts are used primarily by systems development personnel. At the most general level of analysis, only the basic input-process-output relations in a system are of concern. Additional processing detail is provided by hierarchy plus input-process-output.

28 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 27 IPO Chart Payroll job record Payroll master file Accumulate hours worked worked Find correct pay rate Compute gross pay Gross pay records Payroll master file Error messages Author: Mr. Foxx Chart Number: 3.1 System: Payroll Description: Calculate Gross Pay Date: 6/9/0X InputProcessOutput

29 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 28 HIPO Illustration Payroll system 1.0 ProcessingProcessing 3.0 Data preparation 2.0 ReviewReview 4.0

30 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 29 HIPO Illustration Calculate gross pay Calculate Calculate net pay Calculate Each numbered module would be detailed in an IPO chart. Accumulate hours worked Accumulate 3.11 Find correct pay rate Find correct pay rate 3.12 Compute gross pay Compute 3.13

31 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 30 Systems and Program Flowcharts A systems flowchart identifies the overall or broad flow of operations in a system. A program flowchart (block flowchart) is more detailed concerning individual processing functions.

32 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 31 Logical Data Flow Diagram Symbols Terminator Represents sources and destinations of data Process Task or function being done Data store A repository of data Data flow Communicationchannel NameSymbolMeaning

33 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 32 Data Flow Diagram TimekeepingTimekeeping ProcesspayrolldataProcesspayrolldata Payrolldata EmployeesEmployees Paychecks Payroll Data Payrolldata Payrolldetails

34 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 33 Data Flow Diagram Expanded TimekeepingTimekeeping EmployeedataCurrentstatus Valid payroll data Datavalid Payrolldata VerifypayrolldataVerifypayrolldata P1

35 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 34 Data Flow Diagram Expanded Valid payroll data Employeedata Net pay and deductions CalculatepayCalculatepay P2 Data to process EmployeesEmployees Paychecks

36 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 35 Data Flow Diagram Expanded Further Compute net pay Compute ProcesspayrolljournalProcesspayrolljournal Currentamounts UpdateemployeefilesUpdateemployeefiles Net pay and deductions Journaldata Details EmployeesEmployees Paychecks

37 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 36 Analytic, Document, and Forms Distribution Flowcharts An analytic flowchart is similar to a systems flowchart in level of detail and technique. A document flowchart is similar to an analytic flowchart but contains less detail about the processing functions of each entity shown on the chart.

38 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 37 Analytic, Document, and Forms Distribution Flowcharts The forms distribution chart illustrates the distribution of multiple copy forms with an organization. ReceivePurchase

39 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 38 Analytic Flowchart PreparequotationrequestsPreparequotationrequests RequestsforquotationRequestsforquotation ApprovevendorlistApprovevendorlistSelectvendorsSelectvendors RequestsforquotationRequestsforquotation PurchasingSuppliersQuotationsQuotations

40 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 39 Analytic Flowchart Purchasing PurchaseorderPurchaseorder Suppliers QuotationsQuotations PreparepurchaseorderPreparepurchaseorder QuotationsQuotations SelectbidSelectbid PurchaseorderPurchaseorder

41 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 40 Document Flowchart 22 Purchaserequisition 2Purchaserequisition 2 Purchaserequisition 1Purchaserequisition 1 Purchaserequisition 1Purchaserequisition 1 Purchaseorder 3Purchaseorder 3 Purchaseorder 4Purchaseorder 4 Purchaseorder 5Purchaseorder 5 To Vendor Purchaseorder 1Purchaseorder 1 AccountsPayable Purchasing Agent ReceivingStores Controller Vice President Manufacturing

42 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 41 Forms Distribution Chart PurchasingInventoryPayablesProductionAccounting Purchase order copy

43 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 42 Analytical Flowcharting Illustration Symbol selection System analysis Drawing the flowchart Sandwich rule Use of connector symbol Entity-column relations

44 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 43 Narrative Techniques Narrative techniques are useful in the fact-finding stage of system analysis. What are some examples of narrative techniques? Open-ended and closed-ended questionnaires Document reviews

45 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 44 Resource Utilization Analysis Work measurement involves four basic steps. 1. Identify the tasks. 2. Obtain time estimates for performing the tasks. 3. Adjust these time estimates. 4. Analyze requirements based on these data.

46 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 45 Resource Utilization Analysis (Average time/unit + Idle time/unit) × Average volume = Total task time Total time available ÷ Total task time = Capacity utilization

47 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 46 Decision Analysis Techniques Decision to be made Conditions that can occur Path to be followed for each condition

48 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 47 Branching Table Format Code equal to Go to Inconnectorreference 123 Inconnectorreference 4

49 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 48 Decision Table Format Condition stub Action stub 123…N If: Then: Table Title Rules Condition entry Action entry

50 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 49 Decision Table for Processing Labor Distribution Line Condition action Rule Condition action Rule 15 Regular hours 15 Overtime hours 15 Shift bonus hours Regular dollars Overtime dollars Shift dollars Error no shift or OT Nest record 1YYY××××2––N×××3–NY×××4––N××5NYY××6–N××7NY××8N If Then Go to – F (Function); R (Rule, same table); T (Table)

51 2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 50 QUESTIONS ???


Download ppt "2004 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 – 1 SYSTEMS TECHNIQUES AND DOCUMENTATION."

Similar presentations


Ads by Google