Chapter 3 Systems Documentation Techniques Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-1

Learning Objectives  Prepare and use data flow diagrams to understand, evaluate, and document information systems.  Prepare and use flowcharts to understand, evaluate, and document information systems. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-2

What Is Documentation?  Set of documents and models  Narratives, data flow models, flowcharts  Describe who, what, why, when, and where of systems:  Input, process, storage, output, and controls Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-3

Importance and Uses of Documentation  Guideline and procedures for current employee to follow  Training of new employees  Review and evaluation of system effectiveness and controls  Modification of existing system  Proposed systems Copyright 2012 © Pearson Education, Inc. publishing as Prentice Hall 3-4

Why Should You Learn Documentation?  You need to be able to read documentation in all its forms: narratives, diagrams, models.  You need to be able to evaluate the quality of systems, such as internal control based in part on documentation.  SAS 94 requires independent auditors to understand all internal control procedures.  Documentation assists in auditor understanding and documentation of their understanding Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-5

Why Should You Learn Documentation?  Sarbanes-Oxley states that management:  Is responsible for internal control system  Is responsible for assessing the effectiveness of the IC System  Both management and external auditors need to document and test IC System Copyright 2012 © Pearson Education, Inc. publishing as Prentice Hall 3-6

Data Flow Diagrams  Graphically describes the flow of data within a system  Four basic elements  Data source and destination  Data flow  Transformation process  Data stores Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-7

Entity  Represents a source of data or input into the system or  Represents a destination of data or output from the system Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-8

Data Flows  Movement of data among:  Entities (sources or destinations)  Processes  Data stores  Label should describe the information moving Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-9

Process  Represents the transformation of data Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-10

Data Store  Represents data at rest Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-11

Data Flow Diagram Levels  Context  Highest level (most general)  Purpose: show inputs and outputs into system  Characteristics: one process symbol only, no data stores  Level-0  Purpose: show all major activity steps of a system  Characteristics: processes are labeled 1.0, 2.0, and so on Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-12

Data Flow Diagrams Figure Context diagram for the S & S Payroll Processing System New employee form Employee change form Time cards Employee checks Payroll check Tax report and payment Payroll report

Data Flow Diagrams 14 General Ledger Employee/ Payroll file Tax rate tables New employee form Employee change form Time cards Employee checks Payroll check Payroll cash disbursements voucher Payroll tax disbursements voucher Tax report and payment Payroll report Level 0 DFD for the S & S Payroll Processing System

DFD Creation Guidelines  Understand the system  Ignore certain aspects of the system  Determine system boundaries  Develop a context DFD  Identify data flows  Group data flows  Number each process  Identify transformational processes  Group transformational processes  Identify all data stores  Identify all sources and destinations  Label all DFD elements  Subdivide DFD Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-15

Flowcharts  Use symbols to logically depict transaction processing and the flow of data through a system.  Using a pictorial representation is easier to understand and explain versus a detailed narrative. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-16

Flowchart Symbol Categories  Input/Output  Processing  Storage  Miscellaneous 3-17

Flow Chart Symbol Categories  (cont’d)

Types of Flowcharts  Document  Illustrates the flow of documents through an organization  Useful for analyzing internal control procedures  System  Logical representation of system inputs, processes, and outputs  Useful in systems analysis and design  Program  Represent the logical sequence of program logic Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-19

Document Flowchart 3-20

Document Flowchart (cont’d) 3-21

System Flowchart 3-22

System vs. Program Flowchart 3-23