systems documentation techniques
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Systems Documentation Techniques. Chapter 3. INTRODUCTION. Questions to be addressed in this chapter include: What is the purpose of documentation? Why do accountants need to understand documentation? What documentation techniques are used in accounting systems? - PowerPoint PPT PresentationTRANSCRIPT
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Systems Documentation TechniquesChapter 3
3-1
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INTRODUCTION•Questions to be addressed in this chapter
include:▫What is the purpose of documentation?▫Why do accountants need to understand
documentation?▫What documentation techniques are used
in accounting systems?▫What are data flow diagrams and
flowcharts? How are they alike and different? How are they prepared?
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INTRODUCTION•How do accountants use documentation?
▫At a minimum, they have to read documentation to understand how a system works (e.g., auditors need to assess risk).
▫They may need to evaluate the strengths and weaknesses of an entity’s internal controls. Requires heavy reliance on documentation.
▫They may peruse documentation to determine if a proposed system meets the needs of its users.
▫They may prepare documentation to: Demonstrate how a proposed system would work Demonstrate their understanding of a system of
internal controls
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Why Document Systems?
•Sarbanes-Oxley Act (SOX) requires management to assess internal controls and auditors to evaluate the assessment
•SAS-94 requires that auditors understand the automated and manual procedures an entity uses.▫This understanding can be gleaned through
documenting the internal control system—a process that effectively exposes strengths and weaknesses of the system.
•Used for systems development and changes3-4
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INTRODUCTION•In this chapter, we discuss two of the
most common documentation tools:▫Data flow diagrams
• Graphical descriptions of the sources and destinations of data. They show:– Where data comes from– How it flows– The processes performed on it– Where it goes
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INTRODUCTION•In this chapter, we discuss two of the
most common documentation tools:▫Data flow diagrams▫Flowcharts
• Include three types:– Document flowcharts describe the flow of documents and
information between departments or units.– System flowcharts describe the relationship between inputs,
processing, and outputs for a system.– Program flowcharts describe the sequence of logical
operations performed in a computer program.
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DATA FLOW DIAGRAMS•A data flow diagram (DFD) graphically
describes the flow of data within an organization. It is used to:▫Document existing systems▫Plan and design new systems
•An ERD is a data model, and a DFD is a process model
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Data Flow Diagrams (DFD)
Focuses on the data flows for:•Processes•Sources and destinations of the data (also
called external entities)•Data stores
DFD are visually simple, can be used to represent the same process at a high abstract or detailed level.
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DATA FLOW DIAGRAMS• Data sources and destinations (External entities)
▫ Appear as squares▫ Represent organizations, individuals, or organizational
units that send or receive data used or produced by the system
• An item can be both a source and a destination• Used to define system boundaries• Named with a noun
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DATA FLOW DIAGRAMS
Customer1.0
ProcessPayment
2.0Update
A/R
CreditManager
Bank
AccountsReceivable
Customerpayment
Remittancedata
ReceivablesInformation
Deposit
• Data sources and destinations are marked in red.
• Can you tell which are sources and which are destinations?
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DATA FLOW DIAGRAMS•Data flows
▫Appear as arrows, named with nouns▫Represent the flow of data between sources
and destinations, processes, and data stores▫A data flow can be used to represent the
creation, reading, deletion, or updating of data in a file or database (data store).
▫At least one end of every data flow should either come from or go to a process.
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DATA FLOW DIAGRAMS•Processes
▫Appear as circles▫Represent the transformation of data▫Must be numbered and labeled with a single
action verb and an object▫Avoid the use of two verbs in the process name
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DATA FLOW DIAGRAMS
Customer1.0
ProcessPayment
2.0Update
A/R
CreditManager
Bank
AccountsReceivable
Customerpayment
Remittancedata
ReceivablesInformation
Deposit
• The processes are shown in red.• Every process must have at least
one data inflow and at least one data outflow.
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DATA FLOW DIAGRAMS•Data stores
▫Appear as two horizontal lines, named with a noun
▫Represent a temporary or permanent data repository
▫Flow out of a data store = retrieval▫Flow into a data store = inserting or updating ▫Data stores on a DFD are related to entities on
an ERD
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DATA FLOW DIAGRAMS•Subdividing the DFD:
▫Few systems can be fully diagrammed on one sheet of paper, and users have needs for differing levels of detail.
▫Consequently, DFDs are subdivided into successively lower levels to provide increasing amounts of detail.
▫Some data inputs and outputs will not appear on the higher levels of the DFD but appear as the processes are exploded into greater levels of detail.
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DATA FLOW DIAGRAMS•The highest level of DFD is called a
context diagram.▫It provides a summary-level view of the
system.▫It depicts a data processing system and the
external entities that are: Sources of its input Destinations of its output
▫The process symbol is numbered with a “0”
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DATA FLOW DIAGRAMS
PayrollProcessing
System
Depart-ments
HumanResources
Govt.Agencies
Employees
Bank
Manage-ment
Time cards
New employee form
Employee change form
Tax report &
payment
Employee checks
Payroll checkPayroll report
• This is the context diagram for the S&S payroll processing system (Figure 3-5 in your textbook).
0
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DATA FLOW DIAGRAMS• A Level 0 diagram is a projection of the process
on the Context diagram. It is like opening up that process and looking inside to see how it works – to show the internal sub-processes
• On a Level 0 diagram, you repeat the external entities but you also expand the main process into its subprocesses. Also data stores will appear at this level.
• The Level 0 diagram must “balance” with the Context diagram. This means they should both have the same external entities with the same flows to and from those entities.
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DATA FLOW DIAGRAMS
1.0Updateempl.
Payrollfile
2.0Pay
Employ-ees
5.0Update
Gen.Ledger
4.0Pay
taxes
3.0Preparereports
Employee/Payroll file
GeneralLedger
HumanResources
Depart-ments Employees
Bank
Govt.Agencies
Manage-ment
EmployeeChange
form
New employeeform
Timecards
Employeechecks
Payrollcheck
PayrollDisburse-ment data
Payroll taxdisb. voucher
Tax report& payment
Payrollreport
This diagram shows the next level of detail for the context diagram in Figure 3-5.
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DATA FLOW DIAGRAMS
1.0Updateempl.
Payrollfile
2.0Pay
Employ-ees
5.0Update
Gen.Ledger
4.0Pay
taxes
3.0Preparereports
Employee/Payroll file
GeneralLedger
HumanResources
Depart-ments Employees
Bank
Govt.Agencies
Manage-ment
EmployeeChange
form
New employeeform
Timecards
Employeepaychecks
Payrollcheck
PayrollDisburse-ment data
Payroll taxdisb. voucher
Tax report& payment
Payrollreport
Suppose we exploded Process 2.0 (pay employees) in the next level. The sub-processes would be numbered 2.1, 2.2, 2.3, etc.
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DATA FLOW DIAGRAMS•A Level 1 diagram is a projection of a
Level 0 process. •A Level 1 diagram shows all the processes
that comprise a single process on the level 0 diagram.
•It shows how information moves from and to each of these processes.
•Level 1 diagrams may not be needed for all Level 0 processes.
•On Level 1 diagrams we do not repeat external entities. Data stores may not be repeated either.
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CONTEXT DIAGRAM
CUSTOMER
Food Ordering
System
0
Management Report
KITCHEN
RESTAURANTMANAGER
Food OrderCustomer Order
Receipt
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LEVEL 0 DIAGRAM
CUSTOMER
TransformCustomer
Food Order
1.0
Management Report
KITCHEN
RESTAURANTMANAGER
Food OrderCustomer Order
Receipt
UpdateInventoryUpdate
Goods Sold
2.03.0
INVENTORYD2GOODS SOLD
D1
GoodsSold Data
Inventory Data
Formatted Goods Sold Data
Formatted Inventory Data
Daily InventoryDepletion AmountsDaily Goods
Sold AmountsProduce
ManagementReport
4.0
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DFD Balance
CUSTOMER
Transform Customer
Food Order
1.0
Management Report
KITCHEN
RESTAURANTMANAGER
Food OrderCustomer Order
Receipt
UpdateInventoryUpdate
Goods Sold
2.03.0
INVENTORYD2GOODS SOLD
D1
GoodsSold Data
Inventory Data
Formatted Goods Sold Data
Formatted Inventory Data
Daily InventoryDepletion AmountsDaily Goods
Sold AmountsProduce
ManagementReport
4.0
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Level 1 Diagram
ProcessCustomer
Order
1.1
Customer Order
PROCESS 1 ON THE LEVEL 0 DIAGRAM
SUB PROCESS 1 THIS LEVEL 1DIAGRAM
TransformOrder to KitchenFormat
1.3
Customer Order Food Order
GenerateCustomer
Receipt
1.2
Customer Order
Generate Inventory
Decrements
Customer Order
Customer Order
1.5
1.4
Generate Good SoldIncrements
InventoryData
Goods Sold Data
ReceiptNOTE HOW WE HAVE THE SAME INPUTS AND OUTPUTS AS THE ORIGINAL PROCESSSHOWN IN THE LEVEL 0 DIAGRAM
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Another Level 1 Diagram
Management Report
Daily InventoryDepletion Amounts
Daily GoodsSold Amounts
ProduceManagement
Report
4.0
4.1Access
Goods Soldand Inventory
Data
Daily GoodsSold Amounts
Daily InventoryDepletion Amounts
Inventory Data
Goods Sold Data
4.2AggregateGoods Sold
and InventoryData
PrepareManagement
Report
4.3 Management Report
ORGINAL LEVEL 0 PROCESS
LEVEL 1 PROCESSES
PROCESSES 2.0 AND 3.0 ON THE LEVEL 0 DIAGRAMDO NOT NEED FURTHER DECOMPOSTION
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DATA FLOW DIAGRAMS• The first paragraph of the narrative for the
payroll process reads as follows:▫ When employees are hired, they complete a new
employee form. When a change to an employee’s payroll status occurs, such as a raise or a change in the number of exemptions, human resources completes an employee change form. A copy of these forms is sent to payroll. These forms are used to create or update the records in the employee/payroll file and are then stored in the file.
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DATA FLOW DIAGRAMS
1.0Updateempl.
Payrollfile
2.0Pay
Employ-ees
5.0Update
Gen.Ledger
4.0Pay
taxes
3.0Preparereports
Employee/Payroll file
GeneralLedger
HumanResources
Depart-ments Employees
Bank
Govt.Agencies
Manage-ment
EmployeeChange
form
New employeeform
Timecards
Employeepaychecks
Payrollcheck
PayrollDisburse-ment data
Payroll taxdisb. voucher
Tax report& payment
Payrollreport
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DATA FLOW DIAGRAMS•The data flow diagram focuses on the
logical flow of data.•Next, we will discuss flowcharts, which
place greater emphasis on physical details.