Chapter 6:

Documenting Accounting
Information Systems

Introduction
Why Documentation Is Important
Primary Documentation Methods
Other Documentation Tools
End-user Computing And Documentation

Chapter
6-1

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
6-2

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

Chapter
6-3

Example Flowchart

Chapter
6-4

Primary Documentation
Methods
Data Flow Diagrams
Document Flowcharts
System Flowcharts
Process Maps

Chapter
6-5

Data Flow Diagrams

Uses

Used in systems development process

Tool for analyzing an existing system
Types
Context

Physical
Logical
Chapter
6-6

Data Flow Diagram

Symbols

Chapter
6-7

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
6-8

Context Diagram

Chapter
6-9

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
6-10

Physical Data Flow

Diagrams

Chapter
6-11

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
6-12

Logical Data Flow

Diagrams

Chapter
6-13

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
6-14

Decomposition Exploded
View of Process Paycheck
(3.0)

Chapter
6-15

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
6-16

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
Chapter
6-17

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
6-18

Common Document
Flowcharting Symbols

Chapter
6-19

Common Document
Flowcharting Symbols

Chapter
6-20

A Simple Document
Flowchart

Chapter
6-21

A Document Flowchart

Chapter
6-22

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
6-23

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
Chapter
6-24

Study Break #1
The diagram here is most likely a:

A. Document flowchart
B. System flowchart
C. Data flow diagram
D. Program flowchart

Chapter
6-25

Study Break #1 - Answer

The diagram here is most likely a:

A. Document flowchart
B. System flowchart
C. Data flow diagram
D. Program flowchart

Chapter
6-26

Study Break #2
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

Chapter
6-27

Study Break #2 - Answer

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

Chapter
6-28

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

Chapter
6-29

Common System
Flowchart Symbols

Chapter
6-30

Common System
Flowchart Symbols

Chapter
6-31

System Flowchart Payroll Processing

Chapter
6-32

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
6-33

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

Chapter
6-34

System Flowchart
Example

Chapter
6-35

System Flowchart
Example (continued)

Chapter
6-36

Study Break #3
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

Chapter
6-37

Study Break #3 - Answer

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

Chapter
6-38

Study Break #4
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
Chapter
6-39

Study Break #4 - Answer

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
Chapter
6-40

Process Maps
Document business processes in easy-tofollow diagrams.
Auditing uses:

Understand operations
Document understanding
Identify internal control weaknesses and
problems
Chapter
6-41

Process Map - Order

Fulfillment Process

Chapter
6-42

A Second-level Process
Map

Chapter
6-43

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
6-44

Guidelines for Drawing

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

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
6-46

Program Flowchart

Chapter
6-47

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
6-48

Decision Tables

Chapter
6-49

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
Chapter
6-50

Study Break #5
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

Chapter
6-51

Study Break #5 - Answer

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

Chapter
6-52

Study Break #6
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
Chapter
6-53

Study Break #6 - Answer

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
Chapter
6-54

Software Tools for Graphical

Documentation and SOX
Compliance
Microsoft Word, Excel, and PowerPoint
CASE Tools
SOX and AS5 Compliance

Chapter
6-55

CASE Tools
Computer-Assisted Software Engineering
Automate documentation tasks
Examples include:

iGrafx
allCLEAR
SmartDraw
Visio

Rapid Application Development (RAD)

Chapter
6-56

CASE Tool--ExceleratorTM

Chapter
6-57

SOX and AS5 Compliance

Emphasis on entity-level controls
Compliance software packages
Symantec Control Compliance Suite
OpenPages FCM
BizRights

Chapter
6-58

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
6-59

Documentation
Information

Chapter
6-60

Policies for End-User

Computing and
Documentation
1.
2.
3.
4.

Formally evaluate large projects

Adopt formal end-user development policies
Formalize documentation standards
Limit the number of employees authorized
to create end-user applications
5. Audit new and existing systems
Chapter
6-61

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
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omissions, or damages, caused by the use of these programs or from the
use of the information contained herein.

Chapter
6-62

Chapter 6

Chapter
6-63