AIS Questions to be addressed in this chapter include: Decisions an organization makes and the information needed to make them Accounting Information System (AIS) and its basic functions How an AIS can add value to an Organization How an AIS and corporate strategy affect each other Role of AIS in the Value Chain Four major steps in data processing cycle Describe the ways information is stored in computer-based information systems Discuss how organizations use ERP systems to process transactions and provide information Questions to be addressed in this chapter include: Decisions an organization makes and the information needed to make them Accounting Information System (AIS) and its basic functions How an AIS can add value to an Organization How an AIS and corporate strategy affect each other Role of AIS in the Value Chain Four major steps in data processing cycle Describe the ways information is stored in computer-based information systems Discuss how organizations use ERP systems to process transactions and provide information Questions to be addressed in this chapter include: Decisions an organization makes and the information needed to make them Accounting Information System (AIS) and its basic functions How an AIS can add value to an Organization How an AIS and corporate strategy affect each other Role of AIS in the Value Chain Four major steps in data processing cycle Describe the ways information is stored in computer-based information systems Discuss how organizations use ERP systems to process transactions and provide information Questions to be addressed in this chapter include: Decisions an organization makes and the information needed to make them Accounting Information System (AIS) and its basic functions How an AIS can add value to an Organization How an AIS and corporate strategy affect each other Role of AIS in the Value Chain Four major steps in data processing cycle Describe the ways information is stored in computer-based information systems Discuss how organizations use ERP systems to process transactions and provide information Questions to be addressed in this chapter include: Decisions an organization makes and the information needed to make them Accounting Information System (AIS) and its basic functions How an AIS can add value to an Organization How an AIS and corporate strategy affect each other Role of AIS in the Value Chain Four major steps in data processing cycle Describe the ways information is stored in computer-based information systems Discuss how organizations use ERP systems to process transactions and provide information Questions to be addressed in this chapter include: Decisions an organization makes and the information needed to make them Accounting Information System (AIS) and its basic functions How an AIS can add value to an Organization How an AIS and corporate strategy affect each other Role of AIS in the Value Chain Four major steps in data processing cycle Describe the ways information is store

1. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS
• 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.
• 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.

2. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS
• Every shape on a flowchart depicts a unique
operation, input, processing activity, or storage
medium.
• In the days of yore, flowcharts were manually
created using plastic templates.
• Most flowcharts are now drawn using a software
program such as Visio.
– Microsoft and Power Point are also used.
– The software uses pre-drawn shapes, and the developer
drags the shapes into the drawing.

3. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS
• There are four types of flowcharting symbols:
– Input/output symbols
Input/output symbols indicate the
type of device or media that provides
input to or records output from a
process.

4. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS
• There are four types of flowcharting symbols:
– Input/output symbols
– Processing symbols
Processing symbols indicate the type
of device used to process the data or
whether the data is processed
manually.

5. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS
• There are four types of flowcharting symbols:
– Input/output symbols
– Processing symbols
– Storage symbols
Storage symbols indicate the type of
device used to store data while the
system is not using it.

6. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS
• There are four types of flowcharting symbols:
– Input/output symbols
– Processing symbols
– Storage symbols
– Flow and miscellaneous symbols
• Flow and miscellaneous symbols may
indicate:
– The flow of data and goods
– The beginning or end of the flowchart
– The location of a decision
– An explanatory note

7. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
SYSTEM FLOWCHARTS
• Now that we’ve looked at document
flowcharts and guidelines for creating
flowcharts, let’s take a brief look at
system flowcharts.

8. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
SYSTEM FLOWCHARTS
• 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.
• These inputs can be:
– New data
– Data stored for future use
– Both

9. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
SYSTEM FLOWCHARTS
• 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.

10. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
SYSTEM FLOWCHARTS
• 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.
• The output may be:
– Stored for later use
– Displayed on a screen
– Printed on paper
– An input to the next process

11. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
SYSTEM FLOWCHARTS
• 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.

12. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
• System Flowchart
• Can you spot the
input— process—
output pattern?

13. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
PROGRAM FLOWCHARTS
• Program flowcharts illustrate the sequence of
logical operations performed by a computer in
executing a program.
• They also follow an input—process— output
pattern.

14. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
• The program flowchart is
shown on the right.

15. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
• Note that the program flowchart
details the logic of processes
performed by the computer.

16. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
• This flowchart becomes the
programmer’s blueprint for writing
the actual computer program.

17. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS VS. DFDs
• Now that we’ve examined both flowcharts
and DFDs, it may be useful to discuss the
differences again.
• DFDs place a heavy emphasis on the logical
aspects of a system.
• Flowcharts place more emphasis on the
physical characteristics of the system.
• An example may be useful.

18. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS 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
bursar’s office for billing purposes. Class lists
are mailed to faculty members.

19. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
Students
1.0
Update
Student
Records
2.0
Prepare
Class Lists
Student
Records
Faculty
Bursar
Enrollment
Forms
Enrollment
Forms
Enrollment
Forms
Class
Lists
Here’s a DFD
that goes
with the
story.

20. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
Students
1.0
Update
Student
Records
2.0
Prepare
Class Lists
Student
Records
Faculty
Bursar
Enrollment
Forms
Enrollment
Forms
Enrollment
Forms
Class
Lists
Students
Registrar’s Office
Enrollment
Forms
Sort
Forms
Sorted
Enrollment
Forms
Update
Student
Records
A
Prepare
Class
Lists
Sorted
Enrollment
Forms
Class
Lists
Sorted
Enrollment
Forms
Bursar
Faculty
Here’s a
flowchart
that goes
with the
story

21. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS VS. DFDs
• Now let’s change the story so that students
enter enrollment data online. The registrar’s
office sends a tape file of the enrollment data
to the bursar’s office and continues to send
paper class lists to faculty.

22. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
Students
1.0
Update
Student
Records
2.0
Prepare
Class Lists
Student
Records
Faculty
Bursar
Enrollment
Data
Enrollment
Data
Enrollment
Data
Class
Lists
Original
DFD
Students
1.0
Update
Student
Records
2.0
Prepare
Class Lists
Student
Records
Faculty
Bursar
Enrollment
Forms
Enrollment
Forms
Enrollment
Forms
Class
Lists
Here’s the
revised DFD.
How has it
changed?

23. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
Here’s the revised
flowchart. How has it
changed?
Registrar’s Office
Students
Class
Lists
Bursar
Faculty
Enrollment
Data
Update
Student
Records
Student
Records
Enrollment
Data
Prepare
Class
Lists
Student
s
Registrar’s Office
Enrollment
Forms
Sort
Forms
Sorted
Enrollment
Forms
Update
Student
Records
A
Prepare
Class
Lists
Sorted
Enrollment
Forms
Class
Lists
Sorted
Enrollment
Forms
Bursar
Faculty
Original
Flowchart

24. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
FLOWCHARTS VS. DFDs
• Moral of the story: Changes in the physical
characteristics of the process do affect the
flowchart but have little or no impact on the
DFD.
• The DFD focuses more on the logic.
• When deciding which tool to employ, consider
the information needs of those who will view
it.

25. © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart
SUMMARY
• We’ve learned about graphical forms of
documentation, particularly:
– Data flow diagrams
– Flowcharts
• We’ve learned why these tools are important
to accountants and how they are employed.
• We’ve learned basic guidelines for creating
data flow diagrams and flowcharts.