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
Outline Objectives Flowchart types Design issues Symbols Uses in the AIS Risk / control matrix ACCOUNTING INFORMATION SYSTEMS BASIC CONCEPTS & CURRENT ISSUES
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
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
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
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
Symbols Process Document Decision Multiple documents ACCOUNTING INFORMATION SYSTEMS BASIC CONCEPTS & CURRENT ISSUES
Symbols Terminator Connector Manual operation File ACCOUNTING INFORMATION SYSTEMS BASIC CONCEPTS & CURRENT ISSUES
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
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
Source: Roth and Espersen, 2004 Risk / control matrix Source: Roth and Espersen, 2004 ACCOUNTING INFORMATION SYSTEMS BASIC CONCEPTS & CURRENT ISSUES