Accounting information systems 12th SIMKIN and norman chapter 06

Chapter 6:Documenting Accounting Information Systems Introduction Why Documentation Is Important Primary Documentation Methods Other Documentation Tools End-user Computing And Documentat

Chapter 6:

Documenting Accounting Information Systems

Introduction

Why Documentation Is Important

Primary Documentation Methods

Other Documentation Tools

End-user Computing And Documentation

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

6 Auditing AISs

7 Documenting business processes

8 Complying with the Sarbanes-Oxley Act

9 Establishing accountability

Why Documentation Is

Important

Example Flowchart

 Used in systems development process

 Tool for analyzing an existing system

Data Flow Diagram

Symbols

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

Context Diagram

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

Physical Data Flow Diagrams

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

Logical Data Flow Diagrams

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

Decomposition – Exploded View

of “Process Paycheck” (3.0)

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

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

Guidelines for Drawing DFDs

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

Common Document

Flowcharting Symbols

Common Document

Flowcharting Symbols

A Simple Document Flowchart

A Document Flowchart

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.

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

Document Flowcharting

Guidelines

The diagram here is most likely a:

The diagram here is most likely a:

In the diagram, the arrow represents:

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

Study Break #2 - Answer

System Flowcharts

Utilize standardized symbols

Concentrate on the computerized data flows

Depict electronic job stream of data

Illustrate an audit trail through AIS

Common System Flowchart

Symbols

Common System Flowchart

Symbols

System Flowchart - Payroll

Processing

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)

Use on-page and off-page connectors

Sketch a flowchart before designing the final

draft

Use annotated descriptions and comments in

flowcharts for clarification

Systems Flowcharting

Guidelines

System Flowchart Example

System Flowchart Example

(continued)

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

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

Study Break #3 - Answer

The sandwich rule states that:

A You should only create logic diagrams that have some

The sandwich rule states that:

A You should only create logic diagrams that have some

D In DFDs, there should always be data flow lines leading to

Study Break #4 - Answer

Process Map - Order

Fulfillment Process

A Second-level Process Map

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

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

Guidelines for Drawing

Process Maps

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

Program Flowchart

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

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

Drawbacks of Decision Tables

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

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

Study Break #5 - 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

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

Study Break #6 - Answer

Software Tools for Graphical Documentation and SOX Compliance

Microsoft Word, Excel, and PowerPoint

CASE Tools

SOX and AS5 Compliance

CASE Tools

Computer-Assisted Software Engineering

Automate documentation tasks

CASE Tool ExceleratorTM

SOX and AS5 Compliance

Emphasis on entity-level controls

Compliance software packages

Symantec Control Compliance Suite

OpenPages FCM

BizRights

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

Documentation Information

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

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Chapter 6