Chapter 4

Documentation Techniques
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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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

• Documentation explains how a system works,

including the who, what, when, where, why, and
how of data entry, data processing, data storage,
information output, and system 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.
• Statement of Auditing Standard (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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Importance of Documentation
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 the system
 Documenting Business Processes

The basic documentation tools are:

• Data flow diagram- a graphical description of the source and
destination of data that shows data flow within an organization, the
processes performed on the data and how data are stored.
• Document flow chart- a graphical description of the flow of
documents and information between departments or areas of
responsibility within an organization.
• System flow chart- a graphical description of the relationship among
the input, processing, and output in an information system.
• Program flow chart- a graphical description of the sequence of
logical operations that a computer performs as it executes a
program.
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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Each will be represented in a DFD by a unique symbol.
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
There is no ideal way to develop a DFD, because different problems call for different methods.
Some general guidelines for developing DFDs are:

• 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 • Give each process a sequential number
• Repeat the process
• Prepare a final copy

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Example : Data Flow Diagram of Customer Payment Process
Subdividing the DFD

• DFDs are subdivided into successively lower levels to provide ever-

increasing amounts of detail, because few systems can be fully
diagrammed on one sheet of paper.
• The highest-level DFD is referred to as a context diagram because it
provides the reader with a summary-level view of a system. It depicts
a data processing system and the entities that are the sources and
destinations of system inputs and outputs.
Context Diagram for Payroll Processing
Level 0 DFD for Payroll Processing
Level 1 DFD for Process 2.0 in Payroll Processing
 Flowcharts
• A flowchart is a pictorial, analytical technique used to describe some aspect
of an information system in a clear, concise, and logical manner.
• Flowcharts record how business processes are performed and how
documents flow through the organization. They are also used to analyze how
to improve business processes and document flows.
• 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
Flowcharting symbols are
divided into four categories
• Input /Output
• Processing
• Storage
• Miscellaneous

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Flow Chart Symbol Categories
• (cont’d)
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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Group Assignment 20%
As part of Group work you have been has asked to document any one
system in your previous organization. First write short narrative of the
system. Then :
a. Develop a context diagram and a Level 0 DFD for any one system at
your previous organization.
b. Prepare a document flowchart for any one system at your previous
organization.
c. Prepare a business process diagram for any one system at your
previous organization.

Submission Deadline: May 25,2018