Chapter 3

Systems Documentation Techniques

3-1
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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.

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 What Is Documentation?

 Set of documents and models

 Narratives, data flow models, flowcharts

 Describe who, what, why, when, and where of systems:

 Input, process, storage, output, and controls

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 Why Should You Learn Documentation?

 You need to be able to read documentation in all its forms:

narratives, diagrams, models.

 You need to be able to evaluate the quality of systems,

such as internal control based in part on documentation.

 SAS 94 requires independent auditors to understand all

internal control procedures.
 Documentation assists in auditor understanding and
documentation of their understanding

 Sarbanes-Oxley states that management:

 Is responsible for internal control system
 Is responsible for assessing the effectiveness of the IC System
 Both management and external auditors need to document
and test IC System

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 Data Flow Diagrams

 Graphically describes the flow of data within a system

 Four basic elements

Entity Data Flow

Process

Data Store

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 Entity

 Represents a source of data or input into the system

or

 Represents a destination of data or output from the

system

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 Data Flows

 Movement of data among:

 Entities (sources or destinations)
 Processes
 Data stores

 Label should describe the information moving

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 Process

 Represents the transformation of data

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 Data Store

 Represents data at rest

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 Data Flow Diagram Levels

 Context
 Highest level (most general)
 Purpose: show inputs and outputs into system
 Characteristics: one process symbol only, no data stores

 Level-0
 Purpose: show all major activity steps of a system
 Characteristics: processes are labeled 1.0, 2.0, and so on

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 DFD Creation Guidelines

 Understand the system  Identify transformational

processes
 Ignore certain aspects of the
system  Group transformational
processes
 Determine system
boundaries  Identify all data stores

 Develop a context DFD  Identify all sources and

destinations
 Identify data flows
 Label all DFD elements
 Group data flows
 Subdivide DFD
 Number each process

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 Flowcharts

 Use symbols to logically depict transaction processing

and the flow of data through a system.

 Using a pictorial representation is easier to understand

and explain versus a detailed narrative.

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 Flowchart Symbol Categories

 Input/Output

 Processing

 Storage

 Miscellaneous

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 Flow Chart Symbol Categories

 (cont’d)

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 Types of Flowcharts

 Document
 Illustrates the flow of documents through an organization
 Useful for analyzing internal control procedures

 System
 Logical representation of system inputs, processes, and
outputs
 Useful in systems analysis and design

 Program
 Represent the logical sequence of program logic

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 Document Flowchart

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 Document Flowchart (cont’d)

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 System Flowchart

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 Program Flowchart

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