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Documenting Accounting Information Systems
Chapter 5
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Chapter 5: Documenting Accounting Information Systems
Introduction Why Documentation Is Important Primary Documentation Methods Other Documentation Tools End-user Computing And Documentation 2
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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 4
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Why Documentation Is Important
6. Auditing AISs 7. Documenting business processes 8. Complying with the Sarbanes-Oxley Act 9. Establishing accountability 4
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Example Flowchart 4
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Primary Documentation Methods
Data Flow Diagrams Document Flowcharts System Flowcharts Process Maps
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Data Flow Diagrams Uses Used in systems development process
Tool for analyzing an existing system Types Context Physical Logical 16
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Data Flow Diagram Symbols
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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 17
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Context Diagram 18
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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 22
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Physical Data Flow Diagrams
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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 23
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Logical Data Flow Diagrams
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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 24
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Decomposition – Exploded View of “Process Paycheck” (3.0)
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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 25
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Guidelines for Drawing DFDs
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 26
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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
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Common Document Flowcharting Symbols
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A Simple Document Flowchart
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A Document Flowchart 9
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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. 12
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Document Flowcharting Guidelines
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 12
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Study Break #1 The diagram here is most likely a: Document flowchart
System flowchart Data flow diagram Program flowchart
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Study Break #2 In the diagram, the arrow represents:
A wireless transmission A telephone call An information flow A management order to a subordinate
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System Flowcharts Utilize standardized symbols
Concentrate on the computerized data flows Depict electronic job stream of data Illustrate an audit trail through AIS 10
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Common System Flowchart Symbols
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Common System Flowchart Symbols
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System Flowchart - Payroll Processing
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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) 12
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Systems Flowcharting Guidelines
Use on-page and off-page connectors Sketch a flowchart before designing the final draft Use annotated descriptions and comments in flowcharts for clarification 13
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System Flowchart Example
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System Flowchart Example (continued)
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Study Break #3 Which of the following is not true about system flowcharts? They can depict the flow of information in a computerized AIS They use standardized symbols They cannot show how documents flow in an AIS They often document an audit trail
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Study Break #4 The sandwich rule states that:
You should only create logic diagrams that have some “meat” in them Every diagram should have a cover page and a summary page A processing symbol should be between an input and an output symbol In DFDs, there should always be data flow lines leading to and from files
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Process Maps Document business processes in easy-to-follow diagrams.
Auditing uses: Understand operations Document understanding Identify internal control weaknesses and problems 15
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Process Map - Order Fulfillment Process
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A Second-level Process Map
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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 16
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Guidelines for Drawing Process Maps
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 16
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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
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Program Flowchart 29
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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 30
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Decision Tables 30
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Drawbacks of Decision Tables
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 30
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Study Break #5 Which of the following is not true about process maps?
They depict the flow of information in computerized AISs They use standardized symbols Government agencies as well as businesses often use them Web pages often depict hierarchical versions of them
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Study Break #6 A decision table shows:
The possible conditions and processing alternatives for a given situation Who sat where at a board meeting The rules for drawing DFDs The local outsourcing vendors in the area for documentation tasks
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Software Tools for Graphical Documentation and SOX Compliance
Microsoft Word, Excel, and PowerPoint CASE Tools SOX and AS5 Compliance 30
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CASE Tools Computer-Assisted Software Engineering
Automate documentation tasks Examples include: iGrafx allCLEAR SmartDraw Visio Rapid Application Development (RAD) 31
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CASE Tool--ExceleratorTM
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SOX and AS5 Compliance Emphasis on entity-level controls
Compliance software packages Symantec Control Compliance Suite OpenPages FCM BizRights 31
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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 33
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Documentation Information
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Policies for End-User Computing and Documentation
Formally evaluate large projects Adopt formal end-user development policies Formalize documentation standards Limit the number of employees authorized to create end-user applications Audit new and existing systems 34
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