System techniques and documentation (2)

 2001 Prentice Hall Business Publishing, Accounting Information Systems, 8/E, Bodnar/Hopwood 2 - 1
Systems Techniques
and Documentation
Chapter 2

Overview
 Systems techniques are tools used in the
analysis, design, and documentation of
system and subsystem relationships.
 They are largely graphical (pictorial) in
nature.
 Systems techniques are used by accountants
who do systems work.

Learning Objectives
1 Characterize the use of systems techniques
by auditors and systems development
personnel.
2 Describe the use of flowcharting techniques
in the analysis of information processing
systems.

Learning Objectives
3 Define common systems techniques, such
as HIPO charts, systems flowcharts, and
logical data flow diagrams.

Learning Objective 1
Characterize the use of
systems techniques by
auditors and systems
development personnel.

Use of Systems Techniques
in Auditing
 What are the two basic components of an
auditing engagement?
1 The interim audit which usually requires
some type of compliance testing.
2 The financial statement audit which
involves substantive testing.

Internal Control Evaluation
 Auditors are typically concerned with the
flow of processing and distribution of
documents within an application system.
 Auditors need techniques that systematically
structure the system under study.
 Auditors use charts to analyze the
distribution of documents in a system.

Compliance Testing
 Auditors undertake compliance testing to
confirm the existence, assess the effectiveness,
and check the continuity of operation of
internal controls on which reliance is to be
placed.
 Compliance testing requires an understanding
of the controls that are to be tested.

Compliance Testing
 Auditors must have a basic understanding
of systems techniques used in systems
analysis and design.
 What are some of these techniques?
– input-process-output (IPO)
– hierarchy plus input-process-output (HIPO)
– logical data flow diagrams (DFD)

Working Papers
 What are working papers?
 They are the records kept by an auditor of
the procedures and tests applied, the
information obtained, and conclusions
drawn during an audit engagement.
 The auditor is required by professional
standards to maintain working papers.

Working Papers
 What are some of the systems techniques
used by auditors to document and analyze
the content of working papers?
– internal control questionnaires
– analytic flowcharts
– systems flowcharts
– branching and decision tables

Use of Systems Techniques in
Systems Development
 What are the three phases of a systems
development project?
1 Systems analysis
2 Systems design
3 Systems implementation

Systems Analysis
 Systems analysis involves collecting and
organizing facts.
 Systems techniques assist the analyst in
performing these tasks.
 What are some of these techniques?
– matrix techniques
– logical data flow diagrams

Systems Implementation
 Systems implementation involves the actual
carrying out of the design plan.
 Documentation is one of the most important
parts of systems implementation.
 What systems techniques serve as a
documentation tool?
– program flowcharts
– decision tables

Describe the use of
flowcharting techniques in
the analysis of information
processing systems.

Systems Techniques
 What is a flowchart?
 A flowchart is a symbolic diagram that
shows the data flow and sequence of
operations in a system.
 Flowcharts are probably the most common
systems technique.

Basic Symbols
Input/Output
Process
Flowline
Annotation

Specialized Input/Output
Symbols
Punched Card
On-Line Storage
Magnetic Tape
Magnetic Disk
Punched Tape

Specialized Input/Output
Symbols
Document
Manual Input
Display
Communication
Link
Off-Line Storage

Specialized Process Symbols
Decision
Predefined
Process
Preparation
Manual
Operation
Auxiliary
Operation
Merge
Extract
Sort
Collate

Additional Symbols
Connector
Off-page Connector
Terminal
Parallel Mode
Transmittal Tape

Symbol Use in Flowcharting
 Symbols are used in a flowchart to represent
the functions of an information or other type
of system.
 Normal direction of flow is from left to
right and top to bottom.
 Open arrowheads should be used on
reverse-direction flowlines

Invoice
Review
and
Approve
Approved
Invoice
Normal Direction of Flow

Invoice
Review
and
Approve
Approved
Invoice
Reverse Flow Shown with Arrowheads

Use of Connector Symbol
Requisition
Requisition
Purchasing
Stores
A
A

Requisition
Purchase
Order
Vendor
Files
Bidirectional Flow Shown with Arrowheads
Prepare
Purchase Order
and Update
Vendor Files

Define common systems
techniques, such as HIPO
charts, systems flowcharts,
and logical data flow
diagrams.

IPO and HIPO Charts
 These charts are used primarily by systems
development personnel.
 At the most general level of analysis only
the basic input-process-output relations in a
system are of concern.
 Additional processing detail is provided by
hierarchy plus input-process-output.

IPO Chart
Payroll job record
Payroll master file
Accumulate hours
worked
Find correct pay rate
Compute gross pay
Gross pay records
Payroll master file
Error messages
Author: Mr. Foxx
Chart Number: 3.1
System: Payroll
Description:
Calculate Gross Pay Date: 6/9/0X
Input Process Output

Hierarchy Chart
Payroll System
Data Preparation Processing Review
1.0
2.0 3.0 4.0

Hierarchy Chart
Calculate
Gross Pay
Calculate
Net Pay
Accumulate
Hours Worked
Find Correct
Pay Rate
Compute
Gross Pay
3.1 3.2
3.11 3.12 3.13
Each numbered module would be detailed in an IPO chart.

Systems and Program Flowcharts
 A systems flowchart identifies the overall or
broad flow of operations in a system.
 The focus of systems flowcharting concerns
media and processing functions rather than
the detailed logic of individual processing
functions.

Logical Data Flow
Diagram Symbols
Terminator
Process
Data Store
Data Flow

Data Flow Diagram
Timekeeping
Process
Payroll
Data
Employees
Payroll Data

Data Flow Diagram
Timekeeping
Verify
Payroll
Data
P1
Employee Data
Payroll
Data
Current
Status
Data
Valid
Valid Payroll Data

Data Flow Diagram
Employee Data
Valid Payroll Data
Calculate
Pay
P2
Data to
Process
Employees
Paychecks
Net Pay and
Deductions

Data Flow Diagram
Employees
Compute
Net Pay
Net Pay and
Deductions
Paychecks
Update
Employee
Files
Process
Payroll
Journal
Current
Amounts
Details Journal
Data

Analytic, Document, and Forms
Distribution Flowcharts
 An analytic flowchart identifies all
significant processing in an application,
emphasizing processing tasks that apply
controls.
 In an analytic flowchart the flow of
processing is depicted using symbols
connected with flowlines.

 A document flowchart is similar in format to
an analytic flowchart but contains less detail
about the processing functions of each
entity shown on the chart.
 The only symbol used in a document
flowchart is the document symbol.

 The forms distribution chart illustrates the
distribution of multiple copy forms with an
organization.
 The emphasis is on who gets what forms
rather than on how these forms are
processed.

Analytic Flowchart
Approve
Vendor
List
Prepare
Quotation
Select
Vendors
Request
for
Quotation
Request
for
Quotation
Purchasing Suppliers

Analytic Flowchart
Prepare
Purchase
Order
Select
Bid
Quotations
Purchasing Suppliers
Quotations
Purchase
Order
Purchase
Order

Document Flowchart
Controller Vice President Manufacturing
Purchase
Requisition
2
Accounts Payable Purchasing Agent Receiving Stores
2
Purchase
Requisition
1
Purchase
Requisition
1
Purchase
Order
3
Purchase
Order
1
2
34
5
Purchase
Order
4
Purchase
Order
5
To Vendor

Forms Distribution Chart
Purchasing Inventory Payables Production Accounting
Purchase
Order Copy
1
2
3
4
5
1
2
1
2
3
4

Sandwich Rule
 Every process symbol should be
“sandwiched” between an input and an
output symbol.
 Inputs flow into a process symbol and
outputs flow out of the process symbol.

Narrative Techniques
 Narrative techniques are useful in the
fact-finding stage of system analysis.
 What are some examples of narrative
techniques?
– open-ended and closed-ended
questionnaires
– document reviews

Resource Utilization Analysis
 Resource utilization analysis must always
be considered by systems development
personnel in implementing systems.
 Work measurement includes the variety of
techniques used to model, measure, or
estimate clerical or other activities in a
production framework.

Resource Utilization Analysis
 Work measurement involves four basic steps.
 What are these steps?
1 Identify the tasks.
2 Obtain time estimates for performing the
tasks.
3 Adjust these time estimates.
4 Analyze requirements based on these data.

Decision Analysis Techniques
 Branching and decision tables are used
primarily by systems development
personnel.
 A branching table is composed of a
statement of the decision to be made, a list
of the conditions that can occur, and the
path to be followed for each condition.

Branching Table Formats
Code
Equal to
Go to Inconnector
reference
1 2 3
Inconnector
reference
4

 A decision table is a tabular representation
of a decision-making process.
 Decision tables incorporate multiple-
decision criteria.
 They are constructed on an IF-THEN
premise and appear as a two-dimensional
matrix in general form.

1 2 3 ... N
Condition stub
Action stub
Decision Table Format
Condition Entry
Action Entry
Decision Table Format
Table Title Rules
If:
Then:

Decision Table for
Processing Labor Distribution
15 Shift Bonus Hours Y – N Y
15 Overtime Hours Y N Y –
15 Regular Hours Y – – N
1 2 3 4
Regular Dollars x x x
Overtime Dollars x x
Shift Dollars x x
Error No Shift or OT x

End of Chapter 2

System techniques and documentation (2)

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to System techniques and documentation (2)

Similar to System techniques and documentation (2) (20)

Recently uploaded

Recently uploaded (20)

System techniques and documentation (2)