Advanced Accounting Information Systems Day 4 Systems Documentation

Objectives Understand why systems documentation is important in today’s environment READ and DRAW Document flowchart Systems flowchart Process maps Data flow diagrams End user computing documentation Understand and use Program flowcharts Decision tables Understand importance of end user computing documentation

Questions for today Why is documenting an AIS important?

Question for today Describe the differences between document flowchart and system flowchart

Question for today Describe the sandwich rule

Why is documentation important? Depicts how the system works Training users Designing new systems Controlling system development and maintenance costs Standardizing communications with others Auditing AIS Documenting business processes Complying with SOX Establishing accountability

When do we use each documentation tool? Document flowchart System flowchart Process map Data flow diagram Program flowcharts Decision trees Entity relationship diagrams

Document Flowcharts Traces physical flow of documents through an organization Symbols are NOT standardized Board definition of ‘document’ Includes all types of organizational communications and data flows Start by Identifying different departments or groups that handle documents Each department or group gets their own column Next step Identify documents involved Identify where each document is created, processed and used Be sure to account for each copy of a document

Document Flowchart - Example Problem 3-15 The data-entry department of Ron Mitchell Manufacturing Company is responsible for converting all the company’s shipping and receiving information to computer records. Because accuracy in this conversion is essential, the firm employs a strict verification process. Shipping department sends a copy of all shipping orders to the data- entry department A data-entry operator keys the information from a shipping order onto a diskette A supervisor checks every record with the original shipping order. If no errors are detected, the diskette is sent to the computer operations staff and the original shipping order is filed.

System Flowcharts Traces computerized data flows through AIS (i.e., electronic flow of data and processing steps) More likely to have standardized symbols Levels High level – less detail Lower level – more details Indirectly, system flowcharts also indicate processing cycles (daily, weekly, monthly), hardware needs (e.g., disk drives and printers), and potential bottlenecks, major files of system, and major system reports Each processing phase of system flowchart usually involves preparing one or more control report (counts of transactions processed; identify of unprocessed transactions – exception reports)

System Flowcharts Tested on both CPA and CMA exams Read from top to bottom; left to right Sandwich rule – processing symbol should be found between input and output symbol

System Flowchart - Example Problem 3.19 (page 95)

Process Maps Business process – natural group of business activities that create value for an organization Process maps – document business processes in easy-to-follow diagrams Newer technology Easy to use and easy for novices to follow

Process Maps Used by auditors to Learn how a department or division operates Assist in documenting what they have learned Identify internal control weaknesses Used by consultants As training tool Used by accountants and auditors Describe current processes to others Hierarchical process maps

Process Map - Example Problem 3-15 The data-entry department of Ron Mitchell Manufacturing Company is responsible for converting all the company’s shipping and receiving information to computer records. Because accuracy in this conversion is essential, the firm employs a strict verification process. Shipping department sends a copy of all shipping orders to the data- entry department A data-entry operator keys the information from a shipping order onto a diskette A supervisor checks every record with the original shipping order. If no errors are detected, the diskette is sent to the computer operations staff and the original shipping order is filed.

Data Flow Diagrams Used primarily in systems development process analyze existing system create new system Four symbols External entity Data flow Internal entity or transformation process Data store (file) Leveled system Context DFD Decomposition levels Physical Logical

Data Flow Diagrams - Physical Physical dfd Focus on physical entities such as employees involved in system; tangible documents, reports Bubbles – identify employee who performs process Rules Each bubble contains number as well as title Physical dfd includes same inputs and outputs as it predecessor context diagram (i.e. context dfd and physical dfd are BALANCED) All bubbles contain names of system entities (titles of employees) that correspond to official organizational chart

Data Flow Diagram - Example Problem 3-16

Data Flow Diagrams - Logical Logical dfd Focus on what participants do in system (processes) Bubbles – identify employee who performs process Rules Each bubble contains number as well as process name Physical dfd includes same inputs and outputs as it predecessor context diagram (i.e. context dfd and logical dfd are BALANCED)

Data Flow Diagram - Example

Questions for Wednesday What is the purpose of a process map? How does a process map differ from a flowchart? What are the critical components to end user computing documentation? (i.e., what must be included in end user computing documentation?)