Chapter 6-1 Chapter 6: Documenting Accounting Information Systems Introduction Why Documentation Is Important Primary Documentation Methods Other Documentation Tools End-user Computing And Documentation

Chapter 6-2 Why Documentation Is Important 1. Depicting how the system works 2. Training users 3. Designing new systems 4. Controlling system development and maintenance costs 5. Standardizing communications with others

Chapter Auditing AISs 7. Documenting business processes 8. Complying with the Sarbanes-Oxley Act 9. Establishing accountability Why Documentation Is Important

Chapter 6-4 Example Flowchart

Chapter 6-5 Primary Documentation Methods Data Flow Diagrams Document Flowcharts System Flowcharts Process Maps

Chapter 6-6 Uses  Used in systems development process  Tool for analyzing an existing system Types  Context  Physical  Logical Data Flow Diagrams

Chapter 6-7 Data Flow Diagram Symbols

Chapter 6-8 Types of DFDs Context Diagrams  Overview of the system  High-level Physical Data Flow Diagrams  Focuses on the physical entities of organization Logical Data Flow Diagrams  Emphasizes tasks of participants

Chapter 6-9 Context Diagram

Chapter 6-10 Physical Data Flow Diagrams Focus on physical entities, tangible documents, and reports flowing through the system List job titles of employees Simple, more readable, and easier to interpret

Chapter 6-11 Physical Data Flow Diagrams

Chapter 6-12 Logical Data Flow Diagrams Identifies what participants do Bubble indicates a task the system performs Help designers decide:  System resources to acquire  Activities employees must perform  How to protect and control these systems

Chapter 6-13 Logical Data Flow Diagrams

Chapter 6-14 Decomposition Exploding data flow diagrams to create more detail Level 0 data flow diagrams  Exploded into successive levels of detail (3.0 – Process Paycheck) Level 1 data flow diagrams  3.1 – Compute gross pay  3.2 – Compute payroll deductions

Chapter 6-15 Decomposition – Exploded View of “Process Paycheck” (3.0)

Chapter 6-16 Guidelines for Drawing DFDs Avoid detail in high level DFDs Approximately five to seven processes in each Logical DFD Different data flows should have different names All data stores have data flows into and out of them, unless they are used for archiving Include temporary files

Chapter 6-17 Final recipients of system information are external entities Personnel or departments processing data of the current system are internal entities Display only normal processing routines in high-level DFDs Use only one entity to represent several system entities that perform the same task Guidelines for Drawing DFDs

Chapter 6-18 Document Flowcharts Traces the physical flow of documents through an organization Used to analyze systems for weaknesses in controls and reports Begins by identifying departments and groups that handle the documents

Chapter 6-19 Common Document Flowcharting Symbols

Chapter 6-20 Common Document Flowcharting Symbols

Chapter 6-21 A Simple Document Flowchart

Chapter 6-22 A Document Flowchart

Chapter 6-23 Guidelines for Drawing Document Flowcharts Identify all departments involved Classify documents and activities by department Identify documents by numbers or color Account for the distribution of each copy of a document.

Chapter 6-24 Use on-page and off-page connectors Coordinate connectors by letter or number Annotate unclear activities Identify filing sequence when necessary Avoid acronyms that could cause confusion Consider automated flowchart tools Document Flowcharting Guidelines

Chapter 6-25 The diagram here is most likely a: A. Document flowchart B. System flowchart C. Data flow diagram D. Program flowchart Study Break #1

Chapter 6-26 The diagram here is most likely a: A. Document flowchart B. System flowchart C. Data flow diagram D. Program flowchart Study Break #1 - Answer

Chapter 6-27 In the diagram, the arrow represents: A. A wireless transmission B. A telephone call C. An information flow D. A management order to a subordinate Study Break #2

Chapter 6-28 In the diagram, the arrow represents: A. A wireless transmission B. A telephone call C. An information flow D. A management order to a subordinate Study Break #2 - Answer

Chapter 6-29 System Flowcharts Utilize standardized symbols Concentrate on the computerized data flows Depict electronic job stream of data Illustrate an audit trail through AIS

Chapter 6-30 Common System Flowchart Symbols

Chapter 6-31 Common System Flowchart Symbols

Chapter 6-32 System Flowchart - Payroll Processing

Chapter 6-33 System Flowcharting Guidelines Arrange to read from top to bottom and left to right Use standardized symbols There must be a process symbol separating an input and output symbol (Sandwich rule)

Chapter 6-34 Use on-page and off-page connectors Sketch a flowchart before designing the final draft Use annotated descriptions and comments in flowcharts for clarification Systems Flowcharting Guidelines

Chapter 6-35 System Flowchart Example

Chapter 6-36 System Flowchart Example (continued)

Chapter 6-37 Which of the following is not true about system flowcharts? A. They can depict the flow of information in a computerized AIS B. They use standardized symbols C. They cannot show how documents flow in an AIS D. They often document an audit trail Study Break #3

Chapter 6-38 Which of the following is not true about system flowcharts? A. They can depict the flow of information in a computerized AIS B. They use standardized symbols C. They cannot show how documents flow in an AIS D. They often document an audit trail Study Break #3 - Answer

Chapter 6-39 The sandwich rule states that: A. You should only create logic diagrams that have some “meat” in them B. Every diagram should have a cover page and a summary page C. A processing symbol should be between an input and an output symbol D. In DFDs, there should always be data flow lines leading to and from files Study Break #4

Chapter 6-40 The sandwich rule states that: A. You should only create logic diagrams that have some “meat” in them B. Every diagram should have a cover page and a summary page C. A processing symbol should be between an input and an output symbol D. In DFDs, there should always be data flow lines leading to and from files Study Break #4 - Answer

Chapter 6-41 Process Maps Document business processes in easy-to- follow diagrams. Auditing uses:  Understand operations  Document understanding  Identify internal control weaknesses and problems

Chapter 6-42 Process Map - Order Fulfillment Process

Chapter 6-43 A Second-level Process Map

Chapter 6-44 Guidelines for Drawing Process Maps Identify and define the process of interest Understand the purpose for the process map Meet with employees to acquire input Remember that processes have inputs, outputs, and enablers

Chapter 6-45 Show key decision points Pay attention to the level of detail you capture Avoid mapping the “should-be” or “could- be” (Map what is in place!) Practice, practice, practice Guidelines for Drawing Process Maps

Chapter 6-46 Program Flowcharts Outline the processing logic for computer programs Indicate the order of processing steps Structured Walk-Through  Formal review of logic  Assess the soundness of the logic  Detect and correct design flaws  Make improvements Macro Program Flowchart provides an overview of the data processing logic

Chapter 6-47 Program Flowchart

Chapter 6-48 Decision Tables Table of conditions and processing tasks Indicate what action to take for each possibility Used when computer program involves many conditions and subsequent courses of action Used as an alternative to program flowcharts or in addition to the flowcharts

Chapter 6-49 Decision Tables

Chapter 6-50 Do not show order in which a program tests data conditions or takes processing actions Require documentation understanding beyond flowcharting Requires extra work to prepare and the work may not be cost-effective Drawbacks of Decision Tables

Chapter 6-51 Which of the following is not true about process maps? A. They depict the flow of information in computerized AISs B. They use standardized symbols C. Government agencies as well as businesses often use them D. Web pages often depict hierarchical versions of them Study Break #5

Chapter 6-52 Which of the following is not true about process maps? A. They depict the flow of information in computerized AISs B. They use standardized symbols C. Government agencies as well as businesses often use them D. Web pages often depict hierarchical versions of them Study Break #5 - Answer

Chapter 6-53 A decision table shows: A. The possible conditions and processing alternatives for a given situation B. Who sat where at a board meeting C. The rules for drawing DFDs D. The local outsourcing vendors in the area for documentation tasks Study Break #6

Chapter 6-54 A decision table shows: A. The possible conditions and processing alternatives for a given situation B. Who sat where at a board meeting C. The rules for drawing DFDs D. The local outsourcing vendors in the area for documentation tasks Study Break #6 - Answer

Chapter 6-55 Software Tools for Graphical Documentation and SOX Compliance Microsoft Word, Excel, and PowerPoint CASE Tools SOX and AS5 Compliance

Chapter 6-56 CASE Tools Computer-Assisted Software Engineering Automate documentation tasks Examples include:  iGrafx  allCLEAR  SmartDraw  Visio Rapid Application Development (RAD)

Chapter 6-57 CASE Tool--Excelerator TM

Chapter 6-58 SOX and AS5 Compliance Emphasis on entity-level controls Compliance software packages Symantec Control Compliance Suite OpenPages FCM BizRights

Chapter 6-59 End-User Computing and Documentation Non-IT employees create their own computer applications Important of documentation:  Require training manuals and reference guides  Identify how to accomplish and undo actions  Greater efficiency when altering system

Chapter 6-60 Documentation Information

Chapter 6-61 Policies for End-User Computing and Documentation 1.Formally evaluate large projects 2.Adopt formal end-user development policies 3.Formalize documentation standards 4.Limit the number of employees authorized to create end-user applications 5.Audit new and existing systems

Chapter 6-62 Copyright Copyright 2012 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make backup copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

Chapter 6-63 Chapter 6