1. Chapter 5 Flowcharting ACCOUNTING INFORMATION SYSTEMS
McGraw-Hill/Irwin
Accounting Information Systems
© 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 5
Flowcharting
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

2. Outline Objectives Flowchart types Design issues Symbols
Uses in the AIS
Risk / control matrix
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

3. Objectives
When you finish studying this chapter, you should be able to:
List and discuss the purpose and use of various flowchart types
Explain the basic parts of and design considerations common to all types of flowcharts
Identify and describe common symbols and IT tools used in flowcharting
Discuss ways flowcharts impact the design, implementation and evaluation of the AIS
Create a risk / control matrix
Create and interpret systems and document flowcharts
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

4. Flowchart types System flowcharts Program flowcharts
“Big picture” look at an information system
Program flowcharts
Logic of a computer program
Document flowcharts
Trace documents through an information system
Hardware flowcharts
Show relationship between hardware elements
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

5. Design issues Top to bottom, left to right
Iterative nature of flowcharting
White space
Title
Columns depict areas of responsibility
Clear origin, termination and progress for documents
Discussion of rough drafts with others
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

6. Symbols
The universe of flowcharting symbols is practically endless. You can find examples in most software programs—particularly in programs designed for flowcharting. A few examples follow, but they are by no means exhaustive.
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

7. Symbols Process Document Decision Multiple documents
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

8. Symbols Terminator Connector Manual operation File
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

9. Uses in the AIS Understanding how a system works
Making suggestions for system improvement
Spotting internal control deficiencies
Developing procedures manuals
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

10. Risk / control matrix
Tool for analyzing internal controls in an accounting information system
Many formats—one example shown on the next slide
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES

11. Source: Roth and Espersen, 2004
Risk / control matrix
Source: Roth and Espersen, 2004
ACCOUNTING INFORMATION SYSTEMS
BASIC CONCEPTS & CURRENT ISSUES