Documenting Accounting Information Systems

Chapter 6:

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

Primary Documentation Methods

Data Flow Diagrams
Document Flowcharts

System Flowcharts
Process Maps

Chapter 6-4

Data Flow Diagrams

Uses Used in systems development process Tool for analyzing an existing system Types Context Physical Logical
Chapter 6-5

Data Flow Diagram Symbols

Chapter 6-6

Types of DFDs
Context Diagrams

Overview of the system High-level Focuses on the physical entities of organization

Physical Data Flow Diagrams

Logical Data Flow Diagrams

Emphasizes tasks of participants

Chapter 6-7

Context Diagram

Chapter 6-8

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 6-9

Physical Data Flow Diagrams

Chapter 6-10

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 6-11

Logical Data Flow Diagrams

Chapter 6-12

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 6-13

Decomposition Exploded View of Process Paycheck (3.0)

Chapter 6-14

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 6-15

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 6-16

Example 1:
A customer pays an invoice with a cheque. Accounts receivable is updated by AZMAN (AR Clerk) to reflect the payment. The cheque is recorded and deposited into the company bank (CIMB). Required: (1) Prepare a table of entities and activities (2) Draw a context diagram (3) Draw a logical DFD
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

Example 2:
A customer pays an invoice with a cheque. Accounts receivable is updated by AZMAN (AR Clerk) to reflect the payment. The cheque is recorded and deposited into the company bank (CIMB). Required: Draw a document flowchart

Chapter 6-25

System Flowcharts
Utilize standardized symbols
Concentrate on the computerized data flows

Depict electronic job stream of data

Illustrate an audit trail through AIS

Chapter 6-26

Common System Flowchart Symbols

Chapter 6-27

Common System Flowchart Symbols

Chapter 6-28

System Flowchart - Payroll Processing

Chapter 6-29

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 6-30

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 6-31

System Flowchart Example

Chapter 6-32

System Flowchart Example (continued)

Chapter 6-33

Example 3
Upon receipts of the sales order from the Sales Department, the Accounting Department clerk (Azli) manually prepares an invoice and sends it to the customer. Then, using data from the sales order, Saliza enters the sale in the department computerized system and records the sale in the sales journal and in the AR subsidiary ledger. At the end of the day, Salimi prepares a hard-copy sales journal voucher, which is sent to the General Ledger Department.
Required: Draw a flowchart
Chapter 6-34

Software Tools for Graphical Documentation and SOX Compliance

Microsoft Word, Excel, and PowerPoint

CASE Tools (e.g. smartdraw/microsoft visio)

SOX and AS5 Compliance

Chapter 6-35

Chapter 6

Chapter 6-36