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Chapter 6-1. Chapter 6-2 Chapter 6: Documenting Accounting Information Systems Introduction Why Documentation Is Important Primary Documentation Methods.

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Presentation on theme: "Chapter 6-1. Chapter 6-2 Chapter 6: Documenting Accounting Information Systems Introduction Why Documentation Is Important Primary Documentation Methods."— Presentation transcript:

1 Chapter 6-1

2 Chapter 6-2 Chapter 6: Documenting Accounting Information Systems Introduction Why Documentation Is Important Primary Documentation Methods Other Documentation Tools End-user Computing And Documentation

3 Chapter 6-3 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 9. Establishing accountability Why Documentation Is Important

5 Chapter 6-5 Example Flowchart

6 Chapter 6-6 Primary Documentation Methods Data Flow Diagrams Document Flowcharts System Flowcharts Process Maps

7 Chapter 6-7 Uses  Used in systems development process  Tool for analyzing an existing system Types  Context  Physical  Logical Data Flow Diagrams

8 Chapter 6-8 Data Flow Diagram Symbols

9 Chapter 6-9 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

10 Chapter 6-10 Context Diagram

11 Chapter 6-11 Physical Data Flow Diagrams Focus on physical entities, tangible documents, and reports flowing through the system List job titles of employees Simple, more readable, and easier to interpret

12 Chapter 6-12 Physical Data Flow Diagrams

13 Chapter 6-13 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

14 Chapter 6-14 Logical Data Flow Diagrams

15 Chapter 6-15 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

16 Chapter 6-16 Decomposition – Exploded View of “Process Paycheck” (3.0)

17 Chapter 6-17 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, unless they are used for archiving Include temporary files

18 Chapter 6-18 Final recipients of system information are external entities Personnel or 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

19 Chapter 6-19 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

20 Chapter 6-20 Common Document Flowcharting Symbols

21 Chapter 6-21 Common Document Flowcharting Symbols

22 Chapter 6-22 A Simple Document Flowchart

23 Chapter 6-23 A Document Flowchart

24 Chapter 6-24 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.

25 Chapter 6-25 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

26 Chapter 6-26 The diagram here is most likely a: A. Document flowchart B. System flowchart C. Data flow diagram D. Program flowchart Study Break #1

27 Chapter 6-27 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

28 Chapter 6-28 System Flowcharts Utilize standardized symbols Concentrate on the computerized data flows Depict electronic job stream of data Illustrate an audit trail through AIS

29 Chapter 6-29 Common System Flowchart Symbols

30 Chapter 6-30 Common System Flowchart Symbols

31 Chapter 6-31 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)

32 Chapter 6-32 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

33 Chapter 6-33 System Flowchart Example

34 Chapter 6-34 System Flowchart Example (continued)

35 Chapter 6-35 Process Maps Document business processes in easy-to- follow diagrams. Auditing uses:  Understand operations  Document understanding  Identify internal control weaknesses and problems

36 Chapter 6-36 Process Map - Order Fulfillment Process

37 Chapter 6-37 A Second-level Process Map

38 Chapter 6-38 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

39 Chapter 6-39 Show key decision points Pay attention to the level of detail you capture Avoid mapping the “should-be” or “could- be” (Map what is in place!) Practice, practice, practice Guidelines for Drawing Process Maps

40 Chapter 6-40 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


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