AIS romney 2006 slides 03 systems development and documentation techniques

AIS Romney 2006 slides 03 Systems Development and Documentation Techniques

View more presentations from sharingnotes123.

AIS Romney 2006 slides 03 Systems Development and Documentation Techniques - Presentation Transcript

HAPTER 3 Systems Development and Documentation Techniques
INTRODUCTION
Questions to be addressed in this chapter include:
What is the purpose of documentation?
Why do accountants need to understand documentation?
What documentation techniques are used in accounting systems?
What are data flow diagrams and flowcharts?
How are they alike and different?
How are they prepared?
INTRODUCTION
Documentation includes the following types of tools:
Narratives (written descriptions)
Flowcharts
Diagrams
Other written material
INTRODUCTION
Documentation covers the who, what, when, where, why, and how of:
Data entry
Processing
Storage
Information output
System controls
INTRODUCTION
How do accountants use documentation?
At a minimum, they have to read documentation to understand how a system works.
They may need to evaluate the strengths and weaknesses of an entity’s internal controls.
Requires heavy reliance on documentation.
They may peruse documentation to determine if a proposed system meets the needs of its users.
They may prepare documentation to:
Demonstrate how a proposed system would work
Demonstrate their understanding of a system of internal controls
INTRODUCTION
In this chapter, we discuss two of the most common documentation tools:
Data flow diagrams
Graphical descriptions of the sources and destinations of data. They show:
Where data comes from
How it flows
The processes performed on it
Where it goes
INTRODUCTION
In this chapter, we discuss two of the most common documentation tools:
Data flow diagrams
Flowcharts
Include three types:
Document flowcharts describe the flow of documents and information between departments or units.
System flowcharts describe the relationship between inputs, processing, and outputs for a system.
Program flowcharts describe the sequence of logical operations performed in a computer program.
INTRODUCTION
Documentation techniques are necessary tools for accountants:
SAS-94 requires that auditors understand the automated and manual procedures an entity uses.
This understanding can be gleaned through documenting the internal control system—a process that effectively exposes strengths and weaknesses of the system.
SOX (2002) effectively requires that publicly-traded corporations and their auditors document and test the company’s internal controls.
Auditing Standard No. 2 promulgated by the PCAOB requires that the external auditor express an opinion on the client’s system of internal controls.
INTRODUCTION
Documentation tools help accountants by:
Organizing very complicated systems into a form that can be more readily understood
Helping new team members understand a pre-existing system
INTRODUCTION
Which method should you use—flowcharts or DVDs?
62.5% of IS professionals use DFDs.
97.6% use flowcharts.
Both can be prepared relatively simply using available software.
Both are tested on professional exams.
CONCLUSION: You need to know them both.
DATA FLOW DIAGRAMS
A data flow diagram (DFD) graphically describes the flow of data within an organization. It is used to:
Document existing systems
Plan and design new systems
There is no black-and-white approach to developing a DFD.
DATA FLOW DIAGRAMS Customer 1.0 Process Payment 2.0 Update A/R Credit Manager Bank Customer payment Remittance data Receivables Information Deposit
Example of a data flow diagram of the customer payment process from Figure 3-3 in your textbook
Accounts Receivable
DATA FLOW DIAGRAMS
A data flow diagram consists of four basic elements:
Data sources and destinations
Data flows
Transformation processes
Data stores
DATA FLOW DIAGRAMS
A data flow diagram consists of four basic elements:
Data sources and destinations
Data flows
Transformation processes
Data stores
DATA FLOW DIAGRAMS
Data sources and destinations
Appear as squares
Represent organizations or individuals that send or receive data used or produced by the system
An item can be both a source and a destination
DATA FLOW DIAGRAMS Customer 1.0 Process Payment 2.0 Update A/R Credit Manager Bank Customer payment Remittance data Receivables Information Deposit
Data sources and destinations are marked in red.
Can you tell which are sources and which are destinations?
Accounts Receivable
DATA FLOW DIAGRAMS
A data flow diagram consists of four basic elements:
Data sources and destinations
Data flows
Transformation processes
Data stores
DATA FLOW DIAGRAMS
Data flows
Appear as arrows
Represent the flow of data between sources and destinations, processes, and data stores
DATA FLOW DIAGRAMS Customer 1.0 Process Payment 2.0 Update A/R Credit Manager Bank Customer payment Remittance data Receivables Information Deposit
Data flows are shown in red.
Does it appear that a data flow can be two-way?
If so, how is it handled?
Accounts Receivable
DATA FLOW DIAGRAMS Customer 1.0 Process Payment 2.0 Update A/R Credit Manager Bank Customer payment Remittance data Receivables Information Deposit
Data flows should always be labeled.
The exception is a data flow moving into or out of a data store.
What symbol is the data store?
Accounts Receivable
DATA FLOW DIAGRAMS
As you probably surmised from the previous slides, if a data flow is two-way, use a bi-directional arrow.
Update Receiv- ables General Ledger
DATA FLOW DIAGRAMS
If two data elements flow together, then the use of one data flow line is appropriate.
Customer Process Payment Cash Rec’t & Remittance Slip
DATA FLOW DIAGRAMS
If the data elements do not always flow together, then multiple lines will be needed.
Customer Process Payment Customer Inquiry Customer Payment
DATA FLOW DIAGRAMS
A data flow diagram consists of four basic elements:
Data sources and destinations
Data flows
Transformation processes
Data stores
DATA FLOW DIAGRAMS
Processes
Appear as circles
Represent the transformation of data
DATA FLOW DIAGRAMS Customer 1.0 Process Payment 2.0 Update A/R Credit Manager Bank Customer payment Remittance data Receivables Information Deposit
The transformation processes are shown in red.
Every process must have at least one data inflow and at least one data outflow. Why?
What do you notice about how the processes are labeled?
Accounts Receivable
DATA FLOW DIAGRAMS
Data stores
Appear as two horizontal lines
Represent a temporary or permanent repository of data
DATA FLOW DIAGRAMS Customer 1.0 Process Payment 2.0 Update A/R Credit Manager Bank Accounts Receivable Customer payment Remittance data Receivables Information Deposit
The data store is shown in red.
Notice that the inflows and outflows to the data store are not labeled.
DATA FLOW DIAGRAMS
Data dictionary:
Data flows and data stores are typically collections of data elements.
EXAMPLE: A data flow labeled student information might contain elements such as student name, date of birth, ID number, address, phone number, and major.
The data dictionary contains a description of all data elements, data stores, and data flows in a system.
DATA FLOW DIAGRAMS
Subdividing the DFD:
Few systems can be fully diagrammed on one sheet of paper, and users have needs for differing levels of detail.
Consequently, DFDs are subdivided into successively lower levels to provide increasing amounts of detail.
DATA FLOW DIAGRAMS
The highest level of DFD is called a context diagram .
It provides a summary-level view of the system.
It depicts a data processing system and the external entities that are:
Sources of its input
Destinations of its output
DATA FLOW DIAGRAMS Payroll Processing System Depart- ments Human Resources Govt. Agencies Employees Bank Manage- ment Time cards New employee form Employee change form Tax report & payment Employee checks Payroll check Payroll report
This is the context diagram for the S&S payroll processing system (Figure 3-5 in your textbook).
DATA FLOW DIAGRAMS Payroll Processing System Depart- ments Human Resources Govt. Agencies Employees Bank Manage- ment Time cards New employee form Employee change form Tax report & payment Employee checks Payroll check Payroll report
What information comes into this process, and from where?
DATA FLOW DIAGRAMS Payroll Processing System Depart- ments Human Resources Govt. Agencies Employees Bank Manage- ment Time cards New employee form Employee change form Tax report & payment Employee checks Payroll check Payroll report
What information is produced by this process, and where does it go?
DATA FLOW DIAGRAMS 1.0 Update empl. Payroll file 2.0 Pay Employ- ees 5.0 Update Gen. Ledger 4.0 Pay taxes 3.0 Prepare reports Human Resources Depart- ments Employees Bank Govt. Agencies Manage- ment Employee Change form New employee form Time cards Employee paychecks Payroll check Payroll Disburse- ment data Payroll tax disb. voucher Tax report & payment Payroll report This diagram shows the next level of detail for the context diagram in Figure 3-5. Employee/ Payroll file General Ledger
DATA FLOW DIAGRAMS 1.0 Update empl. Payroll file 2.0 Pay Employ- ees 5.0 Update Gen. Ledger 4.0 Pay taxes 3.0 Prepare reports Human Resources Depart- ments Employees Bank Govt. Agencies Manage- ment Employee Change form New employee form Time cards Employee paychecks Payroll check Payroll Disburse- ment data Payroll tax disb. voucher Tax report & payment Payroll report What information comes into these processes and from where? Employee/ Payroll file General Ledger
DATA FLOW DIAGRAMS 1.0 Update empl. Payroll file 2.0 Pay Employ- ees 5.0 Update Gen. Ledger 4.0 Pay taxes 3.0 Prepare reports Human Resources Depart- ments Employees Bank Govt. Agencies Manage- ment Employee Change form New employee form Time cards Employee paychecks Payroll check Payroll Disburse- ment data Payroll tax disb. voucher Tax report & payment Payroll report What information is produced by these processes, and where does it go? Employee/ Payroll file General Ledger
DATA FLOW DIAGRAMS 1.0 Update empl. Payroll file 2.0 Pay Employ- ees 5.0 Update Gen. Ledger 4.0 Pay taxes 3.0 Prepare reports Human Resources Depart- ments Employees Bank Govt. Agencies Manage- ment Employee Change form New employee form Time cards Employee paychecks Payroll check Payroll Disburse- ment data Payroll tax disb. voucher Tax report & payment Payroll report How do the sources and destinations differ from the context diagram? Employee/ Payroll file General Ledger
DATA FLOW DIAGRAMS 1.0 Update empl. Payroll file 2.0 Pay Employ- ees 5.0 Update Gen. Ledger 4.0 Pay taxes 3.0 Prepare reports Human Resources Depart- ments Employees Bank Govt. Agencies Manage- ment Employee Change form New employee form Time cards Employee paychecks Payroll check Payroll Disburse- ment data Payroll tax disb. voucher Tax report & payment Payroll report Notice that each process in the DFD is numbered sequentially. Employee/ Payroll file General Ledger
DATA FLOW DIAGRAMS 1.0 Update empl. Payroll file 2.0 Pay Employ- ees 5.0 Update Gen. Ledger 4.0 Pay taxes 3.0 Prepare reports Human Resources Depart- ments Employees Bank Govt. Agencies Manage- ment Employee Change form New employee form Time cards Employee paychecks Payroll check Payroll Disburse- ment data Payroll tax disb. voucher Tax report & payment Payroll report Suppose we exploded Process 2.0 (pay employees) in the next level. The sub-processes would be numbered 2.1, 2.2, 2.3, etc. Employee/ Payroll file General Ledger
DATA FLOW DIAGRAMS
We’re going to go into a partial example of how the first level of detail was created.
But before we do, let’s step through some guidelines on how to create a DFD.
DATA FLOW DIAGRAMS
RULE 1: Understand the system. Observe the flow of information and interview people involved to gain that understanding.
RULE 2: Ignore control processes and control actions (e.g., error corrections). Only very critical error paths should be included.
RULE 3: Determine the system boundaries—where it starts and stops. If you’re not sure about a process, include it for the time being.
DATA FLOW DIAGRAMS
RULE 4: Draw the context diagram first, and then draw successively greater levels of detail.
RULE 5: Identify and label all data flows. The only ones that do not have to be labeled are those that go into or come out of data stores.
RULE 6: Data flows that always flow together should be grouped together. Those that do not flow together should be shown on separate lines.
DATA FLOW DIAGRAMS
RULE 7: Show a process (circle) wherever a data flow is converted from one form to another. Likewise, every process should have at least one incoming data flow and at least one outgoing data flow.
RULE 8: Transformation processes that are logically related or occur simultaneously can be grouped in one bubble.
RULE 9: Number each process sequentially. A process labeled 5.0 would be exploded at the next level into processes numbered 5.1, 5.2, etc. A process labeled 5.2 would be exploded into 5.21, 5.22, etc.
DATA FLOW DIAGRAMS
RULE 10: Process names should include action verbs, such as update , prepare , etc.
RULE 11: Identify and label all data stores, whether temporary or permanent.
RULE 12: Identify and label all sources and destinations. An entity can be both a source and destination. You may wish to include such items twice on the diagram, if needed, to avoid excessive or crossing lines.
DATA FLOW DIAGRAMS
RULE 13: As much as possible, organize the flow from top to bottom and left to right.
RULE 14: You’re not likely to get it beautiful the first time, so plan to go through several iterations of refinements.
RULE 15: On the final copy, lines should not cross. On each page, include:
The name of the DFD
The date prepared
The preparer’s name
DATA FLOW DIAGRAMS
Now that we’ve been through the guidelines for developing DFDs, let’s go back to the chapter example and see if we can re-create a part of it.
You may wish to create a table with the following headings to organize your information:
Data Inputs
Processes
Data Outputs
DATA FLOW DIAGRAMS Data Outputs Processes Data Inputs
DATA FLOW DIAGRAMS
The first paragraph of the narrative for the payroll process reads as follows:
When employees are hired, they complete a new employee form. When a change to an employee’s payroll status occurs, such as a raise or a change in the number of exemptions, human resources completes an employee change form. A copy of these forms is sent to payroll. These forms are used to create or update the records in the employee/payroll file and are then stored in the file. Employee records are stored alphabetically.
DATA FLOW DIAGRAMS
The first paragraph of the narrative for the payroll process reads as follows:
When employees are hired, they complete a new employee form. When a change to an employee’s payroll status occurs, such as a raise or a change in the number of exemptions, human resources completes an employee change form. A copy of these forms is sent to payroll. These forms are used to create or update the records in the employee/payroll file and are then stored in the file. Employee records are stored alphabetically.
The portion marked in red relates to activities that go on outside the boundaries of the payroll system. Consequently, these activities will not be included on the DFD.
DATA FLOW DIAGRAMS
The first paragraph of the narrative for the payroll process reads as follows:
When employees are hired, they complete a new employee form . When a change to an employee’s payroll status occurs, such as a raise or a change in the number of exemptions, human resources completes an employee change form . A copy of these forms is sent to payroll . These forms are used to create or update the records in the employee/payroll file and are then stored in the file. Employee records are stored alphabetically.
The portion marked in red suggests two data flows coming into the payroll process (new employee forms and employee change forms). The source of the inflows is the human resources department.
DATA FLOW DIAGRAMS New employee forms and employee change forms (from H.R. Dept.) Data Outputs Processes Data Inputs
DATA FLOW DIAGRAMS
The first paragraph of the narrative for the payroll process reads as follows:
When employees are hired, they complete a new employee form. When a change to an employee’s payroll status occurs, such as a raise or a change in the number of exemptions, human resources completes an employee change form. A copy of these forms is sent to payroll. These forms are used to create or update the records in the employee/payroll file and are then stored in the file . Employee records are stored alphabetically.
The sentence marked in red suggests a process (update employee records) with the data outflow going to a data store (the employee/payroll file).
DATA FLOW DIAGRAMS Updated employee/ payroll file Update records (read from file and record) New employee forms and employee change forms (from H.R. Dept.) Data Outputs Processes Data Inputs
DATA FLOW DIAGRAMS
The first paragraph of the narrative for the payroll process reads as follows:
When employees are hired, they complete a new employee form. When a change to an employee’s payroll status occurs, such as a raise or a change in the number of exemptions, human resources completes an employee change form. A copy of these forms is sent to payroll. These forms are used to create or update the records in the employee/payroll file and are then stored in the file. Employee records are stored alphabetically.
The final sentence in this paragraph provides information about the physical storage of the data. Physical information is utilized in flowcharts but not in data flow diagrams.
DATA FLOW DIAGRAMS We will not do the entire DFD, however, you could finish this table by reading the remainder of the narrative in Table 3-1 in your textbook. The portion of the table completed so far allows us to draw the segment of the DFD that is highlighted on the following slide. Updated employee/ payroll file Update records (read from file and record) New employee forms and employee change forms (from H.R. Dept.) Data Outputs Processes Data Inputs
DATA FLOW DIAGRAMS 1.0 Update empl. Payroll file 2.0 Pay Employ- ees 5.0 Update Gen. Ledger 4.0 Pay taxes 3.0 Prepare reports Employee/ Payroll file Human Resources Depart- ments Employees Bank Govt. Agencies Manage- ment Employee Change form New employee form Time cards Employee paychecks Payroll check Payroll Disburse- ment data Payroll tax disb. voucher Tax report & payment Payroll report General Ledger
DATA FLOW DIAGRAMS
Keep the following in mind as you develop your DFD:
Remember to ignore control activities, such as error correction processes.
Some data inputs and outputs will not appear on the first level of the DFD but appear as the processes are exploded into greater levels of detail.
DATA FLOW DIAGRAMS
The data flow diagram focuses on the logical flow of data.
Next, we will discuss flowcharts, which place greater emphasis on physical details.
FLOWCHARTS
A flowchart is an analytical technique that describes some aspect of an information system in a clear, concise, and logical manner.
Flowcharts use a set of standard symbols to depict processing procedures and the flow of data.
FLOWCHARTS
Every shape on a flowchart depicts a unique operation, input, processing activity, or storage medium.
In the days of yore, flowcharts were commonly drawn with templates.
Now, it is more common to use a software program such as Visio.
Microsoft and Power Point are also used
The software uses pre-drawn shapes, and the developer drags the shapes into the drawing.
FLOWCHARTS
There are four types of flowcharting symbols:
Input/output symbols
Input/output symbols indicate the type of device or media that provides input to or records output from a process.
FLOWCHARTS
There are four types of flowcharting symbols:
Input/output symbols
Processing symbols
Processing symbols indicate the type of device used to process the data or whether the data is processed manually.
FLOWCHARTS
There are four types of flowcharting symbols:
Input/output symbols
Processing symbols
Storage symbols
Storage symbols indicate the type of device used to store data while the system is not using it.
FLOWCHARTS
There are four types of flowcharting symbols:
Input/output symbols
Processing symbols
Storage symbols
Flow and miscellaneous symbols
Flow and miscellaneous symbols may indicate:
The flow of data and goods
The beginning or end of the flowchart
The location of a decision
An explanatory note
FLOWCHARTS
Click on buttons below if you wish to review symbols in the various categories.
Input/Output Symbols Processing Symbols Storage Symbols Flow & Misc. Symbols
INPUT/OUTPUT SYMBOLS
Document Symbol
Represents a document or report that is prepared by hand or printed by a computer.
INPUT/OUTPUT SYMBOLS
Multiple Copies of One Document
Indicates multiple copies of a paper document or report.
The document copies should be numbered in the upper, right-hand corner.
2 3 1
INPUT/OUTPUT SYMBOLS
Input/Output; Journal/Ledger
Can represent any input or output on a program flowchart.
Also represents accounting journals or ledgers in a document flowchart.
INPUT/OUTPUT SYMBOLS
Display
Represents information displayed by an online output device such as a terminal, monitor, or screen.
INPUT/OUTPUT SYMBOLS
Online Keying
Represents data entry by an online device such as a terminal or personal computer.
INPUT/OUTPUT SYMBOLS
Terminal or Personal Computer
Combines the display and online keying symbols to represent terminals and personal computers.
INPUT/OUTPUT SYMBOLS
Transmittal Tape
Represents manually prepared control totals which are to be compared to computer totals for control purposes.
Return to Menu Processing Symbols Skip Symbols
PROCESSING SYMBOLS
Computer Processing
Represents a process performed by a computer, which usually results in a change in data or information.
PROCESSING SYMBOLS
Manual Operation
Represents a processing operation that is performed manually.
PROCESSING SYMBOLS
Auxiliary Operation
Represents a processing operation carried out by a device other than a computer, e.g., an optical character scanner.
PROCESSING SYMBOLS
Off-line Keying Operation
Represents an operation that uses an off-line keying device, such as a cash register or keying to a disk.
Return to Menu Skip Symbols Storage Symbols
STORAGE SYMBOLS
Magnetic disk
Represents data stored permanently on a magnetic disk.
Frequently used to represent master files and databases.
STORAGE SYMBOLS
Magnetic Tape
Represents data stored on a magnetic tape.
Sometimes represents transaction files.
STORAGE SYMBOLS
Diskette
Represents data stored on a floppy disk or zip disk.
STORAGE SYMBOLS
Online Storage
Represents data stored in a temporary online file in a direct-access medium such as a magnetic disk.
STORAGE SYMBOLS
File
Represents a file of documents that are manually stored and retrieved.
Letter indicates the ordering sequence:
A = Alphabetic order
D = Date order
N = Numeric order
A Return to Menu Skip Symbols Flow/Misc Symbols
FLOW AND MISCELLANEOUS SYMBOLS
Document or Processing Flow
Represents the direction of processing or document flow.
Normal flow is top to bottom and left to right.
FLOW AND MISCELLANEOUS SYMBOLS
Data/Information Flow
Represents the direction of data/information flow.
Often used to show data being copied from one document to another.
FLOW AND MISCELLANEOUS SYMBOLS
Communication Link
Represents the transmission of data from one location to another via communication lines.
FLOW AND MISCELLANEOUS SYMBOLS
On-page connector
Connects processing from one location to another on the same page.
Used to avoid crisscrossing lines.
FLOW AND MISCELLANEOUS SYMBOLS
Off-page connector
Connects the processing flow between two different pages.
Signals the exit from one page and the corresponding entrance on another page.
FLOW AND MISCELLANEOUS SYMBOLS
Terminal
Represents the beginning, end, or a point of interruption in a process or program.
Also used to indicate an external party.
FLOW AND MISCELLANEOUS SYMBOLS
Decision
Represents a decision-making step.
Used in a program flowchart to show branching to alternate paths.
FLOW AND MISCELLANEOUS SYMBOLS
Annotation
Provides for the addition of descriptive comments or explanatory notes as clarification.
Return to Menu Continue
DOCUMENT FLOWCHARTS
A document flowchart shows the flow of documents and information among areas of responsibility in an organization.
These flowcharts trace a document from cradle to grave and show:
Where a document comes from
Where it’s distributed
How it’s used
It’s ultimate disposition
Everything that happens as it flows through the system
DOCUMENT FLOWCHARTS
Internal control flowcharts are document flowcharts used to evaluate the adequacy of internal controls, such as segregation of duties or internal checks.
They can reveal weaknesses or inefficiences such as:
Inadequate communication flows
Unnecessarily complex document flows
Procedures that cause wasteful delays
Document flowcharts are also prepared in the system design process.
This is part of the document flowchart from Figure 3-9 in your textbook.
GUIDELINES FOR PREPARING FLOWCHARTS
Let’s step through some guidelines for preparing flowcharts:
As with DFDs, you can’t effectively prepare a flowchart if you don’t understand the system, so:
Interview users, developers, auditors, and management.
Administer questionnaires.
Read through narratives.
Walk through systems transactions
GUIDELINES FOR PREPARING FLOWCHARTS
Identify:
Entities to be flowcharted, e.g., departments, functions, external parties (the parties who “do” things in the story)
Documents or information flows
Processes
As you read through a narrative, you may want to mark the preceding items with different shapes (e.g., drawing a rectangle around entities, circling documents, etc.).
GUIDELINES FOR PREPARING FLOWCHARTS
Use separate columns for the activity of each entity.
Example: If there are three different departments or functions that “do” things in the narrative, there would be three columns on the flowchart.
What are the entities in this flowchart?
GUIDELINES FOR PREPARING FLOWCHARTS
Flowchart the normal course of operations, and identify exceptions with annotations.
As much as possible, the flow should go from top to bottom and left to right.
Use standard flowcharting symbols, and draw with a template or computer.
Clearly label all symbols. Use annotations if necessary to provide adequate explanation.
GUIDELINES FOR PREPARING FLOWCHARTS
Give the flowchart a clear beginning and ending.
Show where each document originated and its final disposition.
One approach you can use is to read through the narrative and for each step define:
What was (were) the input(s)
What process was carried out
What was (were) the output(s)
Note on the next slide that the flow sequence is input -- process – output.
Identifies where input is coming from
Inputs
Process
Output to storage
Input for next process
Process
Output
GUIDELINES FOR PREPARING FLOWCHARTS
Every manual process should have at least one input and at least one output.
Show all data entered into or retrieved from a computer file as passing through a process first.
Do not show process symbols for:
Forwarding a document to another entity
Filing a document
Forwarding a document
Filing a document
GUIDELINES FOR PREPARING FLOWCHARTS
Do not connect two documents except when forwarding to another column.
When a document is forwarded, show it in both locations.
Show forwarded document in both locations
GUIDELINES FOR PREPARING FLOWCHARTS
When using multiple copies of a document, place document numbers in the upper, right-hand corner.
What happens to the document numbers as the documents move to other locations?
GUIDELINES FOR PREPARING FLOWCHARTS
Show on-page connectors and label them clearly to avoid excess flow lines.

GUIDELINES FOR PREPARING FLOWCHARTS
Use off-page connectors if the flow goes to another page.
Are there other off-page connectors on this flowchart?
GUIDELINES FOR PREPARING FLOWCHARTS
If a flowchart takes more than one page, label the pages as 1 of 5, 2 of 5, 3 of 5, etc.
Show documents or reports first in the column where they are created.
Start with a rough draft; then redesign to avoid clutter and crossed lines.
Verify the accuracy of your flowchart by reviewing it with users, etc.
Place the flowchart name, the date, and the preparer’s name on each page of the final copy.
SYSTEM FLOWCHARTS
Now that we’ve looked at document flowcharts and guidelines for creating flowcharts, let’s take a brief look at system flowcharts.
SYSTEM FLOWCHARTS
A system flowchart depicts the relationship among the inputs, processes, and outputs of an AIS.
The system flowchart begins by identifying the inputs to the system.
These inputs can be:
New data
Data stored for future use
Both
SYSTEM FLOWCHARTS
A system flowchart depicts the relationship among the inputs, processes, and outputs of an AIS.
The system flowchart begins by identifying the inputs to the system.
Each input is followed by a process, i.e., the steps performed on the data.
If the process is performed by a computer, the logic of the computer program would be depicted in a program flowchart.
SYSTEM FLOWCHARTS
A system flowchart depicts the relationship among the inputs, processes, and outputs of an AIS.
The system flowchart begins by identifying the inputs to the system.
Each input is followed by a process, i.e., the steps performed on the data.
The process is followed by outputs—the resulting new information.
The output may be:
Stored for later use
Displayed on a screen
Printed on paper
An input to the next process
SYSTEM FLOWCHARTS
A system flowchart depicts the relationship among the inputs, processes, and outputs of an AIS.
The system flowchart begins by identifying the inputs to the system.
Each input is followed by a process, i.e., the steps performed on the data.
The process is followed by outputs—the resulting new information.
In other words, it’s the same basic input – process – output pattern that we saw in the document flowchart.
System Flowchart Shown in Figure 3-11 in your textbook
Can you spot the input – process – output pattern?
PROGRAM FLOWCHARTS
Program flowcharts illustrate the sequence of logical operations performed by a computer in executing a program.
They also follow an input – process – output pattern.
The program flowchart from Figure 3-11 in your textbook is shown on the right.
Note that the program flowchart details the logic of processes performed by the computer.
This flowchart becomes the programmer’s blueprint for writing the actual computer program.
FLOWCHARTS VS. DFDs
Now that we’ve examined both flowcharts and DFDs, it may be useful to discuss the differences again.
DFDs place a heavy emphasis on the logical aspects of a system.
Flowcharts place more emphasis on the physical characteristics of the system.
An example may be useful.
FLOWCHARTS VS. DFDs
EXAMPLE: The registrar’s office of a small college receives paper enrollment forms from students. They sort these records alphabetically and then update the student record file to show the new classes. They also prepare class lists from the same data. The sorted enrollment forms are forwarded to the bursar’s office for billing purposes. Class lists are mailed to faculty members.
Here’s a DFD that goes with the story. Students 1.0 Update Student Records 2.0 Prepare Class Lists Student Records Faculty Bursar Enrollment Forms Enrollment Forms Enrollment Forms Class Lists
Students 1.0 Update Student Records 2.0 Prepare Class Lists Faculty Bursar Enrollment Forms Enrollment Forms Enrollment Forms Class Lists Here’s a flowchart that goes with the story Student Records Students Registrar’s Office Enrollment Forms Sort Forms Sorted Enrollment Forms Update Student Records A Prepare Class Lists Sorted Enrollment Forms Class Lists Sorted Enrollment Forms Bursar Faculty
FLOWCHARTS VS. DFDs
Now let’s change the story so that students enter enrollment data online. The registrar’s office sends a tape file of the enrollment data to the bursar’s office and continues to send paper class lists to faculty.
Original DFD Students 1.0 Update Student Records 2.0 Prepare Class Lists Faculty Bursar Enrollment Forms Enrollment Forms Enrollment Forms Class Lists Here’s the revised DFD. How has it changed? Students 1.0 Update Student Records 2.0 Prepare Class Lists Student Records Faculty Bursar Enrollment Data Enrollment Data Enrollment Data Class Lists Student Records
Here’s the revised flowchart. How has it changed? Original Flowchart Registrar’s Office Students Class Lists Bursar Faculty Enrollment Data Update Student Records Student Records Enrollment Data Prepare Class Lists Students Registrar’s Office Enrollment Forms Sort Forms Sorted Enrollment Forms Update Student Records A Prepare Class Lists Sorted Enrollment Forms Class Lists Sorted Enrollment Forms Bursar Faculty
FLOWCHARTS VS. DFDs
Moral of the Story: Changes in the physical characteristics of the process do affect the flowchart but have little or no impact on the DFD.
The DFD focuses more on the logic.
When deciding which tool to employ, consider the information needs of those who will view it.
QUIZ QUESTION
How is playing the piano like making DFDs and flowcharts?
You can’t learn to do it by just watching someone else.
You can’t learn to do it by just looking at examples.
Your first attempts are clumsy.
Practice leads to improvement and maybe even perfection.
SUMMARY
We’ve learned about graphical forms of documentation, particularly:
Data flow diagrams
Flowcharts
We’ve learned why these tools are important to accountants and how they are employed.
We’ve learned basic guidelines for creating data flow diagrams and flowcharts.