Chapter 3 Systems Documentation Techniques

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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.

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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

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Importance and Uses of Documentation

Guideline and procedures for current employee to follow

Training of new employees Review and evaluation of system effectiveness and controls Modification of existing system Proposed systems
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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. SAS 94 requires independent auditors to understand all internal control procedures.
Documentation assists in auditor understanding and documentation of their understanding

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Why Should You Learn Documentation?

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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Data Flow Diagrams

Graphically describes the flow of data within a system
Four basic elements
Data source and destination Data flow Transformation process

Data stores
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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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Data Flow Diagrams

Context diagram for the S & S Payroll Processing System

Figure 3-5

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Data Flow Diagrams

Level 0 DFD for the S & S Payroll Processing System
Tax rate tables
New employee form Time cards Employee checks

Employee change form

Payroll check
Payroll cash disbursements voucher Payroll tax disbursements voucher

Employee/ Payroll file

Tax report and payment Payroll report

General Ledger 14

DFD Creation Guidelines

Understand the system Identify transformational processes Group transformational processes Identify all data stores

Ignore certain aspects of the system

Determine system boundaries

Develop a context DFD

Identify data flows Group data flows Number each process

Identify all sources and destinations

Label all DFD elements Subdivide DFD

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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.

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Flowchart Symbol Categories

Input/Output
Processing Storage Miscellaneous

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Flow Chart Symbol Categories

(contd)

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 (contd)

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System Flowchart

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System vs. Program Flowchart

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