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-to-

follow 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 “could-
be” (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. Formally evaluate large projects

2. Adopt formal end-user development policies
3. Formalize documentation standards
4. 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.
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Section 117 of the 1976 United States Copyright Act without the
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Request for further information should be addressed to the
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use of the information contained herein.

Chapter
6-62
Chapter 6

Chapter
6-63