ACC 3320 Accounting Information System

1. 1 ACC 3320 Accounting Information System

2. Topic 4 Documenting Information Systems

3. Learning Objectives • Read and evaluate data flow diagrams. • Read and evaluate systems flowcharts. • Prepare data flow diagrams from a narrative. • Prepare systems flowcharts from a narrative.

4. Process Documentation • Preparing and using process documentation is an important skill for accountants. • Data flow diagrams portray a business process activities, stores of data, and flows of data among those elements. • System flowcharts present a comprehensive picture of the management, operations, information systems, and process controls embodied in business processes.

5. Data Flow Diagrams • Data flow diagram: a graphical representation of a system that depicts the systems components; the data flows among the components; and the sources, destinations, and storage of data. • Use a limited number of symbols. • Do not depict management or operational elements of a system.

6. Basic DFD Symbols

7. Context Diagram • Context diagram: top-level, or least a detailed, diagram of a system depicting the system and all its activities as a singlebubble and showing the data flows into and out of the system and into and out of the externalentities. • External entities: those entities (i.e., persons, places, or things) outside the system that send data to, or receive data from, thesystem. • Internal entity: an entity within the system that transforms data. It includes accounting clerks (persons), departments (places), and computers (things).

8. Context Diagram

9. Types of data flow diagram (DFD) • Physical data flow diagram (DFD) • Logical data flow diagram (DFD)

10. Physical DFD • Physical data flow diagram (DFD): graphical representation of a system showing the system’s internal and external entities, and the flows of data into and out of these entities. • Specifies where, how, and by whoma system’s processes are accomplished. • Does notspecifywhatis being accomplished. • In the following slide, we see wherethe cash goes and howthe cash receipts data are captured but not exactly whatwas done by the sales clerk.

11. Physical DFD

12. Logical DFD • Logical data flow diagram (DFD): graphical representation of a system showing the system’s processes (as bubbles), data stores, and the flows of data into and out ofthe processes and data stores. • Specifies what activities the system is performing, without specifying how, where, or by whom the activities are accomplished.

13. Logical DFD

14. Balanced DFDs • DFDs are balanced when the external data flows of two or more DFDs are equivalent. • On the following slide DFD (a) is a context diagram. • DFD (b) is an “explosion” of the context into a level 0 DFD. • DFDs (c) and (d) are explosions of level 0 bubbles 1.0 and 3.0. While DFD (e) is an explosion of bubble 3.1.

15. Balanced DFDs

16. Systems Flowcharts • Systems flowchart: a graphical representation of a business process, including informationprocesses (inputs, data processing, data storage, and outputs), as well as the related operations processes (people, equipment, organization, and work activities). • Also known as “process flowcharts” and “business process flowcharts”.

17. Standard Flowcharting Symbols

18. Common System Flowcharting Routines • The following slides show several common ways of showing processing using system flowcharting.

19. Common System Flowcharting Routines (cont’d) Enter document into computer via keyboard, edit input, record input.

20. Common System Flowcharting Routines (cont’d) User queries the computer

21. Common System Flowcharting Routines (cont’d) Update sequential data store

22. Common System Flowcharting Routines (cont’d) Preparation and later manual reconciliation of control totals.

23. Common System Flowcharting Routines (cont’d) Key and key verify inputs

24. Common System Flowcharting Routines (cont’d) Enter document into computer using a scanner

25. Common System Flowcharting Routines (cont’d) Enter document into computer using scanner and manual keying

26. Preparing Data Flow Diagrams • Analyze narrative: • Circle each activity • Place box on entities that perform activities • Activity: any action being performed by an internal or external entity: • Actions related to data (send data, transform data, file or store data, retrieve data from storage, or receive data). • Operations process activities include picking goods in a warehouse, inspecting goods at a receiving dock, or counting cash.

27. DFD Creation Guidelines • Understand the system • Ignore certain aspects of the system • Determine system boundaries • Develop a context DFD • Identify data flows • Group data flows • Number each process • Identify transformational processes • Group transformational processes • Identify all data stores • Identify all sources and destinations • Label all DFD elements • Subdivide DFD

28. Suprina Context Diagram

29. Suprina Current Physical DFD

30. Suprina Current Logical DFD (Level 0)

31. Preparing Systems Flowcharts 1- Divide the flowchart into columns; one column for each internal entity and one for each external entity. Label each column. 2- Flowchart columns should be laid out so that the flowchart activities flow from left to right. But, minimize crossed lines and connectors. 3- Flowchart logic should flow from top to bottom and from left to right. For clarity, put arrows on all flow lines.

32. Preparing Systems Flowcharts (cont’d) 4- Keep the flowchart on one page, if possible. With multiple pages use off-page connectors. 5- When crossing organizational lines (one column to another), show a document at both ends of the flow line unless the connection is so short that the intent is unambiguous.

33. Preparing Systems Flowcharts (cont’d) 6- Documents or reports printed by a centralized computer facility. 7- Do not use manual processes to file documents; show documents going into files.

34. Suprina Systems Flowchart