1. Week 2b

2. Flowcharts When: Used extensively for systems development and for internal control structures 97.6% of accounting/IT professionals use flowcharts. What: Graphical description (i.e. drawing) that utilizes 4 types of universally recognized symbols to describe a system

3. DFD vs. Flowcharts Instead of 4 basic elements as with a Data Flow Diagram:  Data source/destination  Data flow  Transformation process  Data store  Flowcharts have 4 types of symbols: Input/output Processing Storage Flow/Misc

4. Flowcharts Pros: o Clear, unambiguous o Precise o Broad set of symbols o Ability to highlight internal controls within a process or lack of them (gaps) Cons: o Must understand flowcharts, symbols o Information overload

5. FLOW AND MISCELLANEOUS SYMBOLS Document or Processing Flow Represents the direction of processing or document flow. Normal flow is top to bottom and left to right.

6. FLOW AND MISCELLANEOUS SYMBOLS Data/Information Flow Represents the direction of data/information flow. Often used to show data updates via a system operation.

7. FLOW AND MISCELLANEOUS SYMBOLS On-page connector Connects processing from one location to another on the same page. Used to avoid crisscrossing lines.

8. FLOW AND MISCELLANEOUS SYMBOLS Off-page connector Connects the processing flow between two different pages. Signals the exit from one page and the corresponding entrance on another page.

9. FLOW AND MISCELLANEOUS SYMBOLS Terminal Represents the beginning, end, or a point of interruption in a process or program.

10. FLOW AND MISCELLANEOUS SYMBOLS Document Represents a hardcopy document or report that is prepared by hand or printed by a computer. Source is always documented in flowchart

11. FLOW AND MISCELLANEOUS SYMBOLS Multiple Copies of One Document Represents more than one hardcopy document or report that is prepared by hand or printed by a computer. Document copies should be numbered in the upper, right-hand corner, number is retained throughout flowchart

12. FLOW AND MISCELLANEOUS SYMBOLS Manual Operation Represents a processing operation that is performed manually.

13. FLOW AND MISCELLANEOUS SYMBOLS System Operation Represents a processing operation that transforms data/information Is usually performed using a system.

14. FLOW AND MISCELLANEOUS SYMBOLS File Represents a file of documents that are manually stored and retrieved. Letter in symbol indicates the order documents are stored (i.e. A=Alpha; D=Date; N=Numeric)

15. FLOW AND MISCELLANEOUS SYMBOLS Data repository Represents journals or ledgers Usually output in place of a hardcopy document file.

16. FLOW AND MISCELLANEOUS SYMBOLS Decision Represents a decision making step. Indicates a branching to alternate paths Usually a yes/no decision or question

17. FLOW AND MISCELLANEOUS SYMBOLS Annotation Provides for the addition of descriptive comments or explanatory notes as clarification.

18. Things to consider Beware of information overload Use columns/rows for separation of departments, employees, etc. (facilitates segregation of duties analysis) Identify exceptions with annotations, flowchart normal course of process Redesign is part of flowcharting (i.e. get information in flowchart first in general order, then remove clutter, crossed lines, etc.) Verify accuracy of your flowcharts by reviewing

20. Problem 3.7 Flowchart only

21. Problem 3.9 a. Context Diagram, Level 0 of the Cash Receipts System at S&S. b. Flowchart of the Cash Receipts System at S&S.