Chapter 2 Systems Techniques and Documentation .

Presentation Outline How does this system work? Systems Techniques Flowcharting Techniques System Technique Symbols The Use of Systems Techniques

I. Systems Techniques Systems techniques are tools used in analysis, design, and documentation of system and subsystem relationships. Flowcharting Logical Data Flow Diagrams (DFDs) Charting Techniques Narrative Techniques Resource Utilization Analysis Decision Analysis Techniques

A. Flowcharting Read Record A flowchart is a symbolic diagram that shows the data flow and sequence of operations in a system. Decision Process 1 Process 2 Output

B. Logical Data Flow Diagrams (DFDs) A systems analyst often acts as the communication link between users of a system and the programmers/systems support staff who will physically design the system to meet the user needs. The intent of using DFDs is to separate clearly the logical process of systems analysis from the physical process of systems design. The systems analyst provides a logical description to the systems designer/programmer, who then designs the physical specification..

HIPO charts consist of two segments. C. Charting Techniques Hierarchy chart breaking down processing tasks into modules. See Figure 2-6 on page 38. IPO (Input-Process-Output) chart describing the input- process-output requirements of each module. See Figure 2-5 on page 38. HIPO charts consist of two segments. See Figure 2-6 on page 239.

D. Narrative Techniques Narrative techniques are often particularly useful in the fact finding stage of systems analysis. Various techniques include: In depth and structured interviews Open-ended and closed-ended questionnaires Document reviews

E. Resource Utilization Analysis Work measurement involves techniques used to identify tasks, obtain and adjust time estimates for the tasks, and analyze requirements in terms of total task time and capacity utilization Work distribution analysis involves assignment of tasks to employees. See Table 2-2 on page 50. See Table 2.2 on page 52.

F. Decision Analysis Techniques A decision symbol in a flowchart can only show two flow condition. More complex decision functions may be represented using one of the following: Branching tables Decision tables Branching Tables – See Figure 2.19 on page 53. Decision Tables – See Figure 2.21 on page 54. Decision tables can be used in lieu of program flowcharts.

1. Branching Tables A branching table consists of a single condition that can result in more than two paths of processing. Go to Senior Junior Sophomore Freshman Code Equal to Orientation Exit Evaluation A B The “Go to” section contains either a connector symbol reference or a single flowline to another symbol.

Illustration 2. Decision Tables A decision table is similar to a branching table but more complex in that it incorporates multiple decision criteria. Illustration An analyst wishes to prepare a decision table for purchase order procedures. First, there is a credit check of the customer. If credit is approved, the order is accepted. If the order calls for 0 to 25 units, there is no discount on the order. If the order calls for 26 to 55 units, it is eligible for a 5 percent discount; if more than 55 units are ordered, the discount is 10 percent.

An Example of a Limited-Entry Decision Table Condition entries are limited to Y, N, or N/A (-). Processing actions are either present or absent. Credit approved N Y 0 - 25 units - 26 - 55 units Over 55 units Reject order X Accept order No discount 5% discount 10% discount

An Example of an Extended-Entry Decision Table Entries indicate specific conditions, specific actions to be taken, or reference to other decision tables. Credit approval N Y Units in order - 0 – 25 26 – 55 Over 55 Order Acceptance Discount given 0% 5% 10%

II. Flowcharting Techniques Systems Flowchart Analytic Flowcharts Document Flowcharts Forms Distribution Chart Program or Block Flowcharts

A. Systems Flowcharts Cash Payments Remittance Advices Prepare Batch Control Total A systems flowchart is a graphical representation of the overall flow of work, documents, and operations in an application system. The sandwich rule states that every process should be “sandwiched” between an input symbol and and output symbol.

B. Analytic Flowcharts Analytic flowcharts identify all significant processing in an application, emphasizing processing tasks that apply controls. In other words, functional areas are separated by columns. See Figure 2-10 on page 42. See Figure 2.10 on page 44.

B. Document Flowcharts Identifies the point of origin, distribution, and ultimate disposition of each document used in an application system. See Figure 2-11 on page 43. See Figure 2.11 on page 44

C. Forms Distribution Chart Illustrates the distribution of a single multiple copy form within an organization. Emphasis is on form recipient rather than processing. (The following illustrates the Purchase Order in Figure 2-11 on page 43) Purchasing Stores Receiving Vendor Acc. Payable 2 1 3 4 5 6 See Figure 2.12 on page 45.

E. Program or Block Flowcharts Program flowcharts are used by system developers to provide detail about individual processing functions. The clutter of the additional processing detail is thus removed from a flowchart showing overall processing. Compute Gross Pay Withholdings Printing Payroll Processing Hours Worked Payroll Register Checks

III. System Technique Symbols Basic Flowcharting Symbols Other Symbols

A. Basic Flowcharting Symbols Basic Input/Output Symbol – Making data available for processing or the recording of processed information. Process – Transforming data into information or other data. Flowline Symbol – Used to show the sequence of information and processing. Left to right and top to bottom. Annotation – Used to show descriptive comments. - - - - -

Specialized Input/Output Symbols – See Figure 2-2 on page 35. B. Other Symbols Specialized Input/Output Symbols – See Figure 2-2 on page 35. Data Flow Diagram Symbols – See Symbols in Table 2-1 on page 39. See Illustrations in Figures 2-7 through 2-9 on pages 40-41.

IV. The Use of Systems Techniques Auditing Systems Development

A. Auditing Two basic components of an external audit of financial statements include: Compliance testing is used to determine the extent to which established control procedures are actually being carried out. Substantive testing to verify amounts shown on financial statements. The level of substantive testing will depend on the extent to which the auditor depends on an entity’s system of internal control.

B. Systems Development Systems development generally consists of the following three phases: Systems Analysis – Logical data flow diagrams and analytic flowcharts help in providing an overall picture of the how the organization functions. Systems Design – A blueprint of how the proposed system will function. Systems Implementation – Taking steps to put system into operation by doing things like training personnel, and acquiring equipment and software.

Summary Five Types of Systems Techniques Five Types of Flowcharting Techniques Basic Flowcharting Symbols Uses of Systems Techniques Flowcharting, Logical data flow diagrams, HIPO charts, Narrative techniques, Resource utilization analysis, Decision Analysis Techniques (Branching and Decision Tables) Analytic, Document, Forms Distribution, Systems, Program Input/Output, Process, Flow line, Annotation External audit, Systems development