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

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Presentation on theme: "Chapter 3-1. Chapter 3-2 Chapter 3: Documenting Accounting Information Systems Introduction Why Documentation Is Important Document and Systems Flowcharts."— Presentation transcript:

1 Chapter 3-1

2 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

3 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.

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

5 Chapter 3-5 Example Flowchart

6 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

7 Chapter 3-7 Common Document Flowcharting Symbols

8 Chapter 3-8 Common Document Flowcharting Symbols

9 Chapter 3-9 A Sample Document Flowchart

10 Chapter 3-10 A Sample Document Flowchart

11 Chapter 3-11 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 Chapter 3-12 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 Document Flowcharting Guidelines

13 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

14 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

15 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

16 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

17 Chapter 3-17 Common System Flowchart Symbols

18 Chapter 3-18 Common System Flowchart Symbols

19 Chapter 3-19 System Flowchart - Payroll Processing

20 Chapter 3-20 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)

21 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

22 Chapter 3-22 System Flowchart Example

23 Chapter 3-23 System Flowchart Example (continued)

24 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

25 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

26 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

27 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

28 Chapter 3-28 Process Maps Document business processes in easy-to- follow diagrams. Auditing uses:  Understand operations  Document understanding  Identify internal control problems

29 Chapter 3-29 Process Map - Order Fulfillment Process

30 Chapter 3-30 A Second-level Process Map

31 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

32 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

33 Chapter 3-33 Uses  Used in systems development process  Tool for analyzing an existing system Types  Context  Physical  Logical Data Flow Diagrams

34 Chapter 3-34 Data Flow Diagrams Symbols

35 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

36 Chapter 3-36 Context Diagram

37 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

38 Chapter 3-38 Physical Data Flow Diagrams

39 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

40 Chapter 3-40 Logical Data Flow Diagrams

41 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

42 Chapter 3-42 Decomposition – Exploded View of 3.0 (Process Paycheck)

43 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

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

45 Chapter 3-45 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 Chapter 3-46 Program Flowchart

47 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

48 Chapter 3-48 Decision Tables

49 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

50 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

51 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

52 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

53 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

54 Chapter 3-54 Software Tools for Graphical Documentation and SOX Compliance Microsoft Word, Excel, and PowerPoint CASE Tools SOX Compliance Software

55 Chapter 3-55 CASE Tools Computer-Assisted Software Engineering Automate documentation tasks Examples include:  iGrafx  allCLEAR  SmartDraw  Visio

56 Chapter 3-56 CASE Tool--Excelerator TM

57 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

58 Chapter 3-58 Documentation Information

59 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 authorized to create end-user applications 5.Audit new and existing systems

60 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 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.

61 Chapter 3-61 Chapter 3


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