1. Advanced Accounting Information Systems
Day 4
Systems Documentation

2. Objectives
Understand why systems documentation is important in today’s environment
READ and DRAW
Document flowchart
Systems flowchart
Process maps
Data flow diagrams
End user computing documentation
Understand and use
Program flowcharts
Decision tables
Understand importance of end user computing documentation

3. Questions for today
Why is documenting an AIS important?

4. Question for today
Describe the differences between document flowchart and system flowchart

5. Question for today
Describe the sandwich rule

6. Why is documentation important?
Depicts how the system works
Training users
Designing new systems
Controlling system development and maintenance costs
Standardizing communications with others
Auditing AIS
Documenting business processes
Complying with SOX
Establishing accountability

7. When do we use each documentation tool?
Document flowchart
System flowchart
Process map
Data flow diagram
Program flowcharts
Decision trees
Entity relationship diagrams

8. Document Flowcharts
Traces physical flow of documents through an organization
Symbols are NOT standardized
Board definition of ‘document’
Includes all types of organizational communications and data flows
Start by
Identifying different departments or groups that handle documents
Each department or group gets their own column
Next step
Identify documents involved
Identify where each document is created, processed and used
Be sure to account for each copy of a document

9. Document Flowchart - Example
Problem 3-15
The data-entry department of Ron Mitchell Manufacturing Company is responsible for converting all the company’s shipping and receiving information to computer records. Because accuracy in this conversion is essential, the firm employs a strict verification process.
Shipping department sends a copy of all shipping orders to the data- entry department
A data-entry operator keys the information from a shipping order onto a diskette
A supervisor checks every record with the original shipping order. If no errors are detected, the diskette is sent to the computer operations staff and the original shipping order is filed.

10. System Flowcharts
Traces computerized data flows through AIS (i.e., electronic flow of data and processing steps)
More likely to have standardized symbols
Levels
High level – less detail
Lower level – more details
Indirectly, system flowcharts also indicate processing cycles (daily, weekly, monthly), hardware needs (e.g., disk drives and printers), and potential bottlenecks, major files of system, and major system reports
Each processing phase of system flowchart usually involves preparing one or more control report (counts of transactions processed; identify of unprocessed transactions – exception reports)

11. System Flowcharts Tested on both CPA and CMA exams
Read from top to bottom; left to right
Sandwich rule – processing symbol should be found between input and output symbol

12. System Flowchart - Example
Problem 3.19 (page 95)

13. Process Maps
Business process – natural group of business activities that create value for an organization
Process maps – document business processes in easy-to-follow diagrams
Newer technology
Easy to use and easy for novices to follow

14. Process Maps Used by auditors to
Learn how a department or division operates
Assist in documenting what they have learned
Identify internal control weaknesses
Used by consultants
As training tool
Used by accountants and auditors
Describe current processes to others
Hierarchical process maps

15. Process Map - Example Problem 3-15
The data-entry department of Ron Mitchell Manufacturing Company is responsible for converting all the company’s shipping and receiving information to computer records. Because accuracy in this conversion is essential, the firm employs a strict verification process.
Shipping department sends a copy of all shipping orders to the data- entry department
A data-entry operator keys the information from a shipping order onto a diskette
A supervisor checks every record with the original shipping order. If no errors are detected, the diskette is sent to the computer operations staff and the original shipping order is filed.

16. Data Flow Diagrams Used primarily in systems development process
analyze existing system
create new system
Four symbols
External entity
Data flow
Internal entity or transformation process
Data store (file)
Leveled system
Context DFD
Decomposition levels
Physical
Logical

17. Data Flow Diagrams - Physical
Physical dfd
Focus on physical entities such as employees involved in system; tangible documents, reports
Bubbles – identify employee who performs process
Rules
Each bubble contains number as well as title
Physical dfd includes same inputs and outputs as it predecessor context diagram (i.e. context dfd and physical dfd are BALANCED)
All bubbles contain names of system entities (titles of employees) that correspond to official organizational chart

18. Data Flow Diagram - Example
Problem 3-16

19. Data Flow Diagrams - Logical
Logical dfd
Focus on what participants do in system (processes)
Bubbles – identify employee who performs process
Rules
Each bubble contains number as well as process name
Physical dfd includes same inputs and outputs as it predecessor context diagram (i.e. context dfd and logical dfd are BALANCED)

20. Data Flow Diagram - Example

21. Questions for Wednesday
What is the purpose of a process map?
How does a process map differ from a flowchart?
What are the critical components to end user computing documentation? (i.e., what must be included in end user computing documentation?)