Chapter 3 Systems Documentation Techniques Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-1 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 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-2 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. 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 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-3 Data Flow Diagrams Graphically describes the flow of data within a system Four basic elements Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-4 Entity Process Data Flow Data Store Entity Represents a source of data or input into the system or Represents a destination of data or output from the system Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-5 Data Flows Movement of data among: Entities (sources or destinations) Processes Data stores Label should describe the information moving Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-6 Process Represents the transformation of data Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-7 Data Store Represents data at rest Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-8 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 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-9 Flowcharts 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. Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-10 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 Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 3-11 .

1. Chapter 3
Systems Documentation Techniques
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-1
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
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-2
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.
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

2. Both management and external auditors need to document and
test IC System
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-3
Data Flow Diagrams
Graphically describes the flow of data within a system
Four basic elements
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-4
Entity
Process
Data Flow
Data Store
Entity
Represents a source of data or input into the system
or
Represents a destination of data or output from the system
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-5

3. Data Flows
Movement of data among:
Entities (sources or destinations)
Processes
Data stores
Label should describe the information moving
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-6
Process
Represents the transformation of data
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-7
Data Store
Represents data at rest
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-8
Data Flow Diagram Levels
Context
Highest level (most general)

4. 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
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-9
Flowcharts
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.
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-10
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
Copyright © 2012 Pearson Education, Inc. publishing as
Prentice Hall
3-11