Process Mapping

1. Process Mapping

2. Process Mapping An activity to document the understanding of the process - taking into consideration the activities involved, the task owners, the flow of transactions and process measures. Understanding the Process Through Process Mapping

3. Facilitates a more comprehensive identification of process risks Enables the identification of potential process issues such as: Duplication of effort Inadequate or misallocated resources Unnecessary or non-value added activities Facilitates evaluation of overall effectiveness of the process controls Documents the audit team’s understanding of the process and serves as a continuing audit documentation for future audits Benefits of Process Mapping

4. Primary Transactional Flowcharts Process Inter-functional Chart Secondary Functional Process Flowchart Physical Layout Diagram Types of Process Maps

5. To provide a pictorial representation of each activity in a function To show the sequence of tasks for each activity To show the flow of inputs and outputs for each task in an activity To analyze the relationship of tasks involved in each activity Easiest to prepare and update Most commonly used and understood format Good tool to use for client presentations Transactional Flowchart Advantages Purpose Disadvantages • Difficult to draw in complex situations • Does not show inter-functional relationships

6. PO Transaction File PURCHASING STAFF PURCHASING STAFF Attaches PR to PO Purchase Order A Approved PR Updates PO Sends PR to (PO) Encodes PR 1 Generates PO transaction file 1 1 Requesting Dept. 2 2 3 4 GENERAL MANAGER/ To Accounting PURCHASING STAFF PRESIDENT C Distributes PO to Purchase Order user depts. Approved PO Approved PO To Distribution Approves 1 (PO) Sends PO. D PO 2 1 1 Confirms receipt. 3 2 2 To Stockroom 3 3 4 4 4 1 1 1 1 To Requesting PR PR B PR 2 Department file A. The General Manager approves POs with value of P50,000 and less, while the President approves PO above P50,000. Transactional Flowchart - Sample

7. Graphic depiction of inter-functional relationships Illustrates departments involved Easy to overlay time lines Does not have set headings and therefore allows greater flexibility to show all groups, systems and operations within functions to be mapped. To provide an overview of the process to be mapped To show the relationship between different divisions, departments, and systems that are part of the process To show the flow of major activities in the process To show the amount of time required to perform each activity To analyze the process being mapped Process Inter-functional Flowchart Advantages Purpose Disadvantages • Difficult to draw when several functions are involved • Requires large workspace

8. Field Systems Edit Order SYSTEM .5 day Central Systems Retain & Pull Order Sort Order By Log .5 day .5 day Admins- tration Keypunch Print Orders 1 day .5 day Order Support - OEM - Commercial - Initial - Spares GROUPS Create Order Add Shipping Information A/2 1 day .5 day Ware - housing - Document - Stockroom (picking) - shipping Log &Sort Orders Sort & log Assemble & Verify .5 day .5 day 1-3 day Process Inter-functional Flowchart - Sample

9. Request for Credit Memo Varity Validity Projection Valid Credit Memo Request Prepare CM Wk Sht Credit Memo Worksheet Credit Memo Type Credit Memo Proofs for Accuracy Accurate Discard Credit Memo Worksheet Obtain Mgt.. Approval Functional Process Flowchart - Sample Description: The Functional Process Flowchart is the form on which you show the sequence of tasks. INPUT PROCESS OUTPUT INITIATOR MTEC 1. INITIATOR MARKETING TECHNICIAN MTEC 2. Yes SECRETARY 3. CRL 4. MTEC MTEC 5. Yes A/2

10. Physical Layout Diagram - Sample Description: The Physical Layout Diagram shows how a process occurs throughout a building or more specifically within or between departments. The Physical Layout Diagram is a good tool to visually see the people, forms, documents, and reports involved in a process.

11. NAME Activity/ Processing Decision Document Process Mapping Guidelines - Primary Symbols DESCRIPTION Indicates that an activity or task is being performed. When this symbol appears, the task sequence flows to the right if the decision is “yes” or down if the decision is “no”. Represents the generation of a physical document. Multiple overlaying symbols are used if multiple documents are generated. SYMBOL

12. NAME Direction of Flow Chart Connections Process Mapping Guidelines - Primary Symbols DESCRIPTION Flow arrows show the order in which activities are completed. The arrows depict the process flow. Shows the continuation of the flow from page to page of a Process Map. When you reach the bottom of a page, draw a flow chart connector symbol and connect it to the last item on the chart. Label the inside of the symbol and the page number on which the process continues. SYMBOL

13. Specific Guidelines in Process Mapping 1. When preparing flowcharts at detail level, the activity box is often replaced by more specific symbols, such as: Manual Filing Automated Input Computer Storage Manual Input

14. Specific Guidelines in Process Mapping 2. Label origins and destinations. Always print the origin of input and destination of output above the respective symbols. Sales Representative Purchase Request

15. Specific Guidelines in Process Mapping 3. Use flow lines carefully. If the line from one process to another crosses over an already existing flow line, draw the secondary line as shown below: Existing Process Secondary Process

16. Status report approved? Make Changes to Status Report Specific Guidelines in Process Mapping 4. Number the symbols.Numbering each process symbol can be useful to cross-reference to a system narrative or the same task number on a process description chart. 5. Be sure to connect flows.Always use a flowchart connector symbol when you continue a diagram to another page or carry it over to another process. yes Continue flowing the “yes” condition here G/20 G/10

17. Verify validity of statistics YES Valid? NO Specific Guidelines in Process Mapping 6. Remember to denote the responsible department or individual.Place the department name or the Responsible Individual above each process symbol or area of the map. 7. Use a manual activity symbol before a decision diamond. If you show the flow branching in a yes/no response, someone has made a decision. Indicate that by using a decision diagram. Since decisions and approvals are seldom made in a void, a manual activity symbol generally precedes the decision symbol.

18. Specific Guidelines in Process Mapping 8. Be certain the “YES” comes off to the right and the “NO” flows against the mainstream. 9. Attach sample of forms. 10.Level of detail. 11.REMEMBER, when using flowchart symbols, make sure you are consistent and use a legend.

19. Time per activity “Delay” time Number of activities Number of reviews Cost of each activity Errors Consider These Additions to the Flowchart

20. The Auditor Should Now: Have a good understanding of the process Have a good view of the key information about the process Have a better basis for identifying process risks and related controls After Completing the Process Map