Definition

• Documentation refers to the logical flow

of data and the procedures that
employees must follow to accomplish
tasks in business processes.
• Documentation includes all the
flowcharts, narratives, Diagrams and
other written communications that
describe the inputs, processing, and
outputs of an AIS.
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 Definition
• Documentation helps employees understand how
a system works, assists accountants in designing
controls for it, and gives managers confidence that
it will meet their information needs.
• Documentation covers the who, what, when,
where, why, and how of:
– Data entry
– Processing
– Storage
– Information output
– System controls
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 Importance of Documentation to AIS
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
6. Auditing AISs
7. Documenting business processes
8. Establishing accountability
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 Documentation Tools
Two most common documentation tools are:
1. Data flow diagrams
Graphical descriptions of the sources and destinations of data. They show:
– Where data comes from (source)
– How it flows
– The processes performed on it
– Where it goes (destinations)

2. Flowcharts
• Include three types:
– Document flowcharts describe the physical flow of documents through an
organization—i.e., from the departments, groups, or individuals who first
create them to their final dispositions.
– 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.

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 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.
• The data flow diagram focuses on the logical
flow of data
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 Basic elements of DFD
• A data flow diagram consists of four basic
elements:
– Entity (Data sources and destinations)
– Data flows
– Transformation processes
– Data stores

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 DATA FLOW DIAGRAMS
• Example of a data flow
diagram of the customer
Accounts
payment process
Receivable

Customer Remittance
Receivables
payment data
Process Update Information Credit
Customer A/R Manager
Payment

Deposit

Bank
 DATA FLOW DIAGRAMS
Entity (Data sources and destinations)
• Represents a source of data/input into the system or
a destination of data or output from the system.
– 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

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 DATA FLOW DIAGRAMS
• Data sources and destinations are
marked in red.
• Can you tell which are sources and
which are destinations?

Customer Receivables
Remittance
payment Information
Customer data Credit
Process Update
Payment Manager
A/R
Deposit

Bank

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 DATA FLOW DIAGRAMS
• Data flows =
– Appear as arrows
– Represent the flow of data between sources and
destinations, processes, and data stores

•Shows movement of data among:

Entities (sources or destinations)
Processes
Data stores
•Label should describe the information moving

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 DATA FLOW DIAGRAMS
• Data flows are shown in red.
• Does it appear that a data flow can be two-way?

Receivables
Customer Remittance
1.0 2.0 Information
payment data Credit
Customer Process Update Manager
Payment A/R

Deposit

Bank

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 DATA FLOW DIAGRAMS
• If a data flow is two-way, use a bi-directional
arrow.

Update
General
Receive-
Ledger
ables

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 DATA FLOW DIAGRAMS
If two data elements flow together, then the use
of one data flow line is appropriate

Cash Rec’d & Remittance Slip Process

Customer
Payment

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 DATA FLOW DIAGRAMS

If the data elements do not always flow

together, then multiple lines will be needed.

Customer Inquiry
Process
Customer Customer Payment Payment

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 DATA FLOW DIAGRAMS
Processes
– Appear as circles
– Represent the transformation of data

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 DATA FLOW DIAGRAMS

• The transformation processes are shown in red.

• Every process must have at least one data inflow
and at least one data outflow.

Remittance Receivables
Customer 1.0 data 2.0 Information Credit
Customer payment
Process Update Manager
Payment A/R

Deposit

Bank

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 DATA FLOW DIAGRAMS
• Data stores
– Represents data at rest
– Appear as two horizontal lines
– Represent a temporary or permanent repository of data
– The box labeled with Accounts receivable shows the data
storage

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 Data Flow Diagram Symbols
Entity (Data sources and
destinations
Data flows

Processes

Data stores
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 Data Flow Diagram Symbols
• Entity: A data source or data destination symbol on the
DFD represents an organization or individual that sends
or receives data that they system uses or produces.
• A data flow represents the flow of data between
processes, data stores and data sources and destinations.
• A transformation process represents the transformations
of data.
• A data store is a temporary or permanent warehouse of
data.
• A data dictionary contains description of all the
elements, stores, and flows in a system.

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 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 and phone number
– The data dictionary contains a description of all
data elements, data stores, and data flows in a
system.

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 DFD Creation Guidelines
• Understand the system
• Determine system boundaries
• Develop a context DFD
• Identify and group data flows
• Number each process
• Identify transformational processes
• Identify all data stores
• Identify all sources and destinations
• Label all DFD elements

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 Data Flow Diagrams
• Data flow diagrams are subdivided into
successively lower levels in order to provide
increasing amounts of detail.

• The highest-level DFD is referred to as a

context diagram.

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 FLOW CHARTS
• 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 place greater emphasis on
physical details.

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 FLOW CHARTS
• Flowcharting History:
– Introduced in 1950s by industrial engineers to document business
processes and document flows for process improvement.
– Sarbanes-Oxley 2002 increased importance by requiring companies to
document business processes and internal controls procedures.

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 Flow chart symbols
• Flowcharting symbols can be divided into the
following four categories:
1 Input/output symbols
2 Processing symbols
3 Storage symbols
4 Flow and miscellaneous symbols

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 Flow chart symbols
Some Input Output Symbols
Symbol
Name
• Document

• Online keying

• Display

• Input/output;
Journal/ledger
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 Flow chart symbols
Some Processing Symbols
Symbol Name

Manual operations

Computer processing

Auxiliary operation

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 Flow chart symbols
• Some Storage Symbols
Symbol Name

Magnetic disk

Magnetic tape

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 Flow chart symbols

• Flow and Miscellaneous Symbols

Symbol Name
Document or processing flow
On-page connector

Off-page connector

Terminal

Decision
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 Types of FLOW CHARTS
• There are three types of flow charts:
– Document flowcharts describe the physical flow of
documents through an organization—i.e., from the
departments, groups, or individuals who first create
them to their final dispositions.
– 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.

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 Document flowchart
• A document flowchart shows the flow of documents
and information among areas of responsibility in an
organization.
• These flowcharts 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

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 Document flowchart
• 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 inefficiencies
such as:
– Inadequate communication flows
– Unnecessarily complex document flows
– Procedures that cause wasteful delays

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 System flowchart
• A system flowchart depicts the relationship among the inputs,
processes, and outputs of an AIS.
• A system flowchart begins by identifying both the inputs that
enter the system and their origins.
• The input is followed by the processing portion of the
flowchart.
• These inputs can be:
– New data
– Data stored for future use
– Both

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 System flowchart
• 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.
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 System flowchart

• 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—resulting in
new information. • The output may be:
– Stored for later use
– Displayed on a screen
– Printed on paper
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 System flowchart

• 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.

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 Program flowchart
• Program flowcharts illustrate the sequence of
logical operations performed by a computer in
executing a program.
• They also follow an input—process— output
pattern.

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 Program flowchart

• Note that the program flowchart details

the logic of processes performed by the
computer.
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 FLOW CHARTS VS. DFDs
• DFDs emphasize the flow of data and what is happening in
a system, whereas a flowchart emphasizes the flow of
documents or records containing data.
• A DFD represents the logical flow of data, whereas a
flowchart represents the physical flow of data.
• Flowcharts are used primarily to document existing
systems. DFDs, in contrast, are primarily used in the
design of new systems and do not concern themselves
with the physical devices used to process, store, and
transform data.
• DFDs make use of only four symbols, where as flowcharts
use many symbols and thus can show more detail.

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 FLOW CHARTS 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 finance’s office for billing purposes. Class
lists are mailed to faculty members.
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 FLOW CHARTS VS. DFDs

Here’s a DFD
Enrollment Sort
that goes with Students
Students the story.
Form Forms
Enrollment
Forms

A Update Sorted
1.0 Student Enrollment
Update Student
Records Records Forms
Student
Records
Enrollment
Forms
Sorted Prepare
Enrollment Class
Forms Lists
2.0
Prepare Finance
Enrollment
Class Lists Forms Sorted
Class
Here’s a Enrollment
Class Lists Lists
flowchart Forms
that goes
Faculty with the
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story Faculty finance