Prelim Ch3

Accounting Information Systems
Fourteenth Edition
Chapter 3
Systems Documentation
Techniques
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Learning Objectives
• Prepare and use data flow diagrams to understand,
evaluate, and document information systems.
• Prepare and use flowcharts to understand, evaluate, and
document information systems.
• Prepare and use business process diagrams to
understand, evaluate, and document information systems.
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Why Document Systems?
• Accountants must be able to read documentation and
understand how a system works (e.g., auditors need to
assess risk)
• Sarbanes–Oxley Act (SOX) requires management to
assess internal controls and auditors to evaluate the
assessment
• Used for systems development and changes
Data Flow Diagrams (DFD)
Focuses on the data flows for:
• Processes
• Sources and destinations of the data
• Data stores
DFD are visually simple and can be used to represent the

same process at a high abstract (summary) or detailed level.
Basic Data Flow Diagram Elements
Basic Guidelines for Creating a DFD
• Understand the system that • Identify and group all the
you are trying to represent. basic elements of the DFD.
• A DFD is a simple • Name data elements with
representation meaning that descriptive names, use action
you need to consider what is verbs for processes (e.g.,
relevant and what needs to be update, edit, prepare,
included. validate, etc.).
• Start with a high level (context • Give each process a
diagram) to show how data sequential number to help the
flows between outside entities reader navigate from the
and inside the system. Use abstract to the detailed levels.
additional DFD’s at the • Edit/Review/Refine your DFD
detailed level to show how to make it easy to read and
data flows within the system. understand.
Flowcharts
Describe an information system showing:
• Inputs and Outputs
• Information activities (processing data)
• Data storage
• Data flows
• Decision steps
Key strengths of flowcharts are that they can easily capture

control via decision points, show manual vs. automated
processes.
Flowcharts Symbols
Types of Flowcharts
• Document: shows the flow of documents and data for a
process, useful in evaluating internal controls
• System: depicts the data processing cycle for a process
• Program: illustrates the sequence of logic in the system
process
Guidelines for Drawing Flowcharts
• Understand the system you are trying to represent.
• Identify business processes, documents, data flows, and
data processing procedures.
• Organize the flowchart so as it reads from top to bottom
and left to right.
• Clearly label all symbols.
• Use page connectors (if it cannot fit on a single page).
• Edit/Review/Refine to make it easy to read and
understand.
Business Process Diagrams
• Is a visual way to represent the activities in a business
process.
• Intent is that all business users can easily understand the
process from a standard notation (BPMN: Business
Process Modeling Notation).
• Can show the organizational unit performing the activity.
Business Process Diagram Basic Symbols
Payroll Business Process Diagram Example
Guidelines for Drawing Data Flow
Diagrams
• Identify and understand the business process.
• Decide the level of detail (summary or detailed DFD).
• Organize diagram using as many rows needed to explain
the process.
• Enter each business process on the diagram showing
where it begins and ends.
• Draw a rough sketch, refine, and finalize.
Key Terms
• Documentation • Context diagram
• Narrative description • Flowchart
• Data flow diagram (DFD) • Document flowchart
• Data source • Internal control flowchart
• Data destination • System flowchart
• Data flow • Program flowchart
• Process • Business process diagram (BPD)
• Data store

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Accounting Information Systems

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DFD are visually simple and can be used to represent the

Key strengths of flowcharts are that they can easily capture

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