CH02 Systems Techniques and Documentation

7/24/2019 CH02 Systems Techniques and Documentation

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2004 Prentice Hall Business Publishing,Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 1

Systems TechniquesSystems Techniques

and Documentationand Documentation

Chapter 2Chapter 2


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Learning Objective 1Learning Objective 1

Characterize the use of systemsCharacterize the use of systems

techniques by auditors andtechniques by auditors and

systems development personnel.systems development personnel.


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Users of Systems TechniquesUsers of Systems Techniques

Systes techni!ues are tools"Systes techni!ues are tools"

#hey are largely graphical $pictorial% in nature"#hey are largely graphical $pictorial% in nature"

&nalysis&nalysis 'esign'esign 'ocuentation'ocuentation


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Use of SystemsUse of Systems

Techniques in AuditingTechniques in Auditing

(hat are the two basic coponents(hat are the two basic coponents

o) an auditing engageent*o) an auditing engageent*

1" #he interi audit1" #he interi audit

+opliance testing+opliance testing

2" #he )inancial2" #he )inancial

stateent auditstateent audit

Substantie testingSubstantie testing


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2004 Prentice Hall Business Publishing,Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 -

Internal Control EvaluationInternal Control Evaluation

&uditors are typically concerned with the&uditors are typically concerned with the

)low o) processing and distribution o))low o) processing and distribution o)

docuents within an application syste"docuents within an application syste"

&uditors use charts to analy.e the&uditors use charts to analy.e thedistribution o) docuents in a syste"distribution o) docuents in a syste"


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2004 Prentice Hall Business Publishing,Accounting Information Systems, 9/e, by Bodnar/Hopwood 2

Compliance TestingCompliance Testing

+opliance testing re!uires an understanding+opliance testing re!uires an understanding

o) the controls that are to be tested"o) the controls that are to be tested"

&uditors ust hae a basic understanding&uditors ust hae a basic understanding

o) systes techni!ues"o) systes techni!ues"

inputprocessoutput $P%inputprocessoutput $P%

hierarchy plus inputprocessoutput $HP%hierarchy plus inputprocessoutput $HP%

logical data )low diagras $''%logical data )low diagras $''%


7/502004 Prentice Hall Business Publishing,Accounting Information Systems, 9/e, by Bodnar/Hopwood 2

Working PapersWorking Papers

5e!uired by pro)essional standards5e!uired by pro)essional standards

#hese are the records 6ept by an auditor#hese are the records 6ept by an auditor

o) the procedures and tests applied, theo) the procedures and tests applied, the

in)oration obtained, and conclusionsin)oration obtained, and conclusions

drawn during an audit engageent"drawn during an audit engageent"


8/502004 Prentice Hall Business Publishing,Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 7

Working PapersWorking Papers

(hat are soe o) the systes techni!ues(hat are soe o) the systes techni!ues

used by auditors to docuent and analy.eused by auditors to docuent and analy.e

the content o) wor6ing papers*the content o) wor6ing papers*

internal control !uestionnairesinternal control !uestionnaires

analytic )lowchartsanalytic )lowcharts syste )lowchartssyste )lowcharts

branching and decision tablesbranching and decision tables



Use of Systems TechniquesUse of Systems Techniques

in Systems evelopmentin Systems evelopment

(hat are the three phases o) a(hat are the three phases o) a

systes deelopent pro9ect*systes deelopent pro9ect*

1" Systes analysis1" Systes analysis

2" Systes design2" Systes design

3" Systes ipleentation3" Systes ipleentation



Systems AnalysisSystems Analysis

:uch o) a systes analyst;s 9ob inoles:uch o) a systes analyst;s 9ob inoles

collecting and organi.ing )acts"collecting and organi.ing )acts"

Systes techni!ues e



Systems esignSystems esign

& blueprint ust be )orulated& blueprint ust be )orulated

)or the coplete syste")or the coplete syste"

nput/output $atri



Systems ImplementationSystems Implementation

Systes ipleentation inoles theSystes ipleentation inoles the

actual carrying out o) the design plan"actual carrying out o) the design plan"

(hat systes techni!ues sere(hat systes techni!ues sere

as a docuentation tool*as a docuentation tool*

Progra )lowchartsProgra )lowcharts

'ecision tables'ecision tables


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Describe the use of flowchartingDescribe the use of flowcharting

techniques in the analysis oftechniques in the analysis of

information processing systems.information processing systems.


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Systems TechniquesSystems Techniques

(hat is a )lowchart*(hat is a )lowchart*

& )lowchart is a sybolic diagra& )lowchart is a sybolic diagra

that shows the data )low andthat shows the data )low and

se!uence o) operations in a syste"se!uence o) operations in a syste"


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2004 Prentice Hall Business Publishing,Accounting Information Systems, 9/e, by Bodnar/Hopwood 2 1-

!asic Sym"ols!asic Sym"ols

nput/outputnput/output

ProcessProcess

&nnotation&nnotation

lowlinelowline


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Speciali#ed Input$%utputSpeciali#ed Input$%utput

Sym"olsSym"ols

PunchedPunched

cardcard

nlinenline

storagestorage:agnetic:agnetic

dis6dis6:agnetic:agnetic

tapetape

PunchedPunched

tapetape


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Speciali#ed Input$%utputSpeciali#ed Input$%utput

Sym"olsSym"ols

'ocuent'ocuent

:anual:anual

inputinput

'isplay'isplay

))line))line

storagestorage

+ounication+ounication

lin6lin6


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Speciali#ed Process Sym"olsSpeciali#ed Process Sym"ols

'ecision'ecision

Prede)inedPrede)inedprocessprocess

PreparationPreparation

:anual:anualoperationoperation

&u


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Additional Sym"olsAdditional Sym"ols

Parallel odeParallel ode

#ransittal tape#ransittal tape

+onnector+onnector

))page))pageconnectorconnector

#erinal#erinal


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Sym"ol Use in &lo'chartingSym"ol Use in &lo'charting

Sybols are used in a )lowchart toSybols are used in a )lowchart to

represent the )unctions o) anrepresent the )unctions o) an

in)oration or other type o) syste"in)oration or other type o) syste"

?oral direction o) )low is )ro?oral direction o) )low is )ro

le)t to right and top to botto"le)t to right and top to botto"

pen arrowheads should be usedpen arrowheads should be used

on reersedirection )lowlines"on reersedirection )lowlines"


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Sym"ol Usage IllustrationSym"ol Usage Illustration

noicenoice

?oral 'irection o) low?oral 'irection o) low

5eiew5eiew

andandapproeapproe

&pproed&pproedinoiceinoice


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5eerse low Shown with &rrowheads5eerse low Shown with &rrowheads

noicenoice5eiew5eiew

andandapproeapproe

&pproed&pproed

inoiceinoice


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@se o) +onnector Sybol@se o) +onnector Sybol

&pproed&pproed

inoiceinoice

AA

StoresStores

noicenoice

AA

PurchasingPurchasing


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Bidirectional low Shown with &rrowheadsBidirectional low Shown with &rrowheads

5e!uisition5e!uisition

AendorAendor

)iles)iles

PreparePreparepurchase orderpurchase order

and updateand updatevendor filesvendor files

PurchasePurchase

orderorder


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Define common systems techniques,

such as !P" charts, systems

flowcharts, and logical

data flow diagrams.


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IP% and (IP% ChartsIP% and (IP% Charts

#hese charts are used priarily by#hese charts are used priarily by

systes deelopent personnel"systes deelopent personnel"

&t the ost general leel o) analysis,&t the ost general leel o) analysis,

only the basic inputprocessoutputonly the basic inputprocessoutput

relations in a syste are o) concern"relations in a syste are o) concern"

&dditional processing detail is proided&dditional processing detail is proided

by hierarchy plus inputprocessoutput"by hierarchy plus inputprocessoutput"


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IP% ChartIP% Chart

Payroll #ob recordPayroll #ob record

Payroll master filePayroll master file

Accumulate hoursAccumulate hours

wor$edwor$ed

%ind correct pay rate%ind correct pay rateCompute gross payCompute gross pay

&ross pay records&ross pay records

Payroll master filePayroll master file

'rror messages'rror messages

Author: Mr. FoxxAuthor: Mr. Foxx

Chart Number: 3.1Chart Number: 3.1

System: PayrollSystem: Payroll

Description: CalculateDescription: Calculate

Gross PayGross Pay Date: !"!#$Date: !"!#$%nput%nput ProcessProcess &utput&utput


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(IP% Illustration(IP% Illustration

Payroll systePayroll systePayroll systePayroll syste

)*+)*+

ProcessingProcessingProcessingProcessing

,*+,*+

'ata preparation'ata preparation'ata preparation'ata preparation

-*+-*+

5eiew5eiew5eiew5eiew

.*+.*+


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(IP% Illustration(IP% Illustration

+alculate+alculategross paygross pay+alculate+alculate

gross paygross pay

+alculate+alculatenet paynet pay+alculate+alculate

net paynet pay

,*),*) ,*-,*-

'ach numbere( mo(ule )oul( be (etaile( in an %P& chart.

&ccuulate&ccuulatehours wor6edhours wor6ed&ccuulate&ccuulatehours wor6edhours wor6ed

,*)),*))

ind correctind correctpay ratepay rateind correctind correctpay ratepay rate

,*)-,*)-

+opute+oputegross paygross pay+opute+oputegross paygross pay

,*),,*),

S t d PS t d P


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Systems and ProgramSystems and Program

&lo'charts&lo'charts

&&systems flowchartsystems flowchartidenti)ies the oerallidenti)ies the oerall

or broad )low o) operations in a syste"or broad )low o) operations in a syste"

&&program flowchartprogram flowchart$bloc6 )lowchart%$bloc6 )lowchart%

is ore detailed concerningis ore detailed concerningindiidual processing )unctions"indiidual processing )unctions"

/ i l t &l/ i l t &l


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/ogical ata &lo'/ogical ata &lo'

iagram Sym"olsiagram Sym"ols

#erinator#erinator5epresents sources and5epresents sources anddestinations o) datadestinations o) data

ProcessProcess#as6 or )unction#as6 or )unctionbeing donebeing done

'ata store'ata store & repository o) data& repository o) data

'ata )low'ata )low+ounication+ounicationchannelchannel

?ae?ae SybolSybol :eaning:eaning


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ata &lo' iagramata &lo' iagram

#ie6eeping#ie6eeping#ie6eeping#ie6eeping

ProcessProcesspayrollpayroll

datadata

ProcessProcess

payrollpayrolldatadata

PayrollPayroll(ata(ata >ployees>ployees

>ployees>ployees

Paychec*sPaychec*s

Payroll 'ataPayroll 'ata

PayrollPayroll(ata(ata

PayrollPayroll(etails(etails


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ata &lo' iagram E0pandedata &lo' iagram E0panded

#ie6eeping#ie6eeping#ie6eeping#ie6eeping

>ployee>ployeedatadata

CurrentCurrentstatusstatus

AalidAalidpayroll datapayroll data

DataData+ali(+ali(

PayrollPayroll(ata(ata

Aeri)yAeri)ypayrollpayroll

datadata

Aeri)yAeri)ypayrollpayroll

datadataP(P(


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ata &lo' iagram E0pandedata &lo' iagram E0panded

AalidAalidpayroll datapayroll data

>ployee>ployeedatadata

Net pay an(Net pay an(

(e(uctions(e(uctions

+alculate+alculatepaypay

+alculate+alculatepaypay

P2P2

Data toData to

processprocess>ployees>ployees>ployees>ployees

Paychec*sPaychec*s

ata &lo iagramata &lo' iagram


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ata &lo' iagramata &lo' iagram

E0panded &urtherE0panded &urther

+opute+oputenet paynet pay+opute+oputenet paynet pay

ProcessProcesspayrollpayroll9ournal9ournal

ProcessProcesspayrollpayroll9ournal9ournal

CurrentCurrent

amountsamounts

@pdate@pdateeployeeeployee

)iles)iles

@pdate@pdateeployeeeployee

)iles)iles

Net pay an(Net pay an(

(e(uctions(e(uctions

ournalournaldatadata

DetailsDetails

>ployees>ployees>ployees>ployeesPaychec*sPaychec*s

Analytic ocument and &ormsAnalytic ocument and &orms


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Analytic1 ocument1 and &ormsAnalytic1 ocument1 and &orms

istri"ution &lo'chartsistri"ution &lo'charts

&n&n analytic flowchartanalytic flowchartis siilaris siilar

to a systes )lowchart in leelto a systes )lowchart in leel

o) detail and techni!ue"o) detail and techni!ue"

&& document flowchartdocument flowchartis siilar to anis siilar to an

analytic )lowchart but contains lessanalytic )lowchart but contains less

detail about the processing )unctionsdetail about the processing )unctions

o) each entity shown on the chart"o) each entity shown on the chart"

Analytic ocument and &ormsAnalytic ocument and &orms


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Analytic1 ocument1 and &ormsAnalytic1 ocument1 and &orms

istri"ution &lo'chartsistri"ution &lo'charts

#he#heforms distribution chartforms distribution chartillustratesillustrates

the distribution o) ultiple copythe distribution o) ultiple copy

)ors with an organi.ation")ors with an organi.ation"

5eceie5eceiePurchasePurchase


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Analytic &lo'chartAnalytic &lo'chart

PreparePreparequotationquotationrequestsrequests

PreparePreparequotationquotationrequestsrequests

)equests)equestsforfor

quotationquotation


quotationquotation

ApproveApprovevendorvendor

listlist

ApproveApprovevendorvendor

listlist

*elect*electvendorsvendors

*elect*electvendorsvendors


quotationquotation


quotationquotation

PurchasingPurchasing SuppliersSuppliers

+uotations+uotations+uotations+uotations


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Analytic &lo'chartAnalytic &lo'chart

PurchasingPurchasing

PurchasePurchaseorderorder


SuppliersSuppliers


PreparePreparepurchasepurchase

orderorder

PreparePreparepurchasepurchase

orderorder


*elect*electbidbid

*elect*electbidbid




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ocument &lo'chartocument &lo'chart

2222

PurchasePurchase

requisitionrequisition 22

PurchasePurchase

requisitionrequisition 22

PurchasePurchaserequisitionrequisition

((


((


((


((




--


--



,o -en(or,o -en(or

----

2222


((


((

AccountsAccountsPayablePayable

Purchasin AentPurchasin Aent /ecei+in/ecei+in StoresStores+ontroller+ontroller Aice President :anu)acturingAice President :anu)acturing


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&orms istri"ution Chart&orms istri"ution Chart

PurchasinPurchasin %n+entory%n+entory PayablesPayables Pro(uctionPro(uction AccountinAccountin

PurchasePurchaseor(er copyor(er copy

22

33

4455

11 1122

44

1122

33

Analytical &lo'chartingAnalytical &lo'charting


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Analytical &lo'chartingAnalytical &lo'charting

IllustrationIllustration

Sybol selectionSybol selection

Syste analysisSyste analysis

'rawing the )lowchart'rawing the )lowchart Sandwich ruleSandwich rule

@se o) connector sybol@se o) connector sybol >ntitycolun relations>ntitycolun relations


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2arrative Techniques2arrative Techniques

?arratie techni!ues are use)ul in the?arratie techni!ues are use)ul in the

)act)inding stage o) syste analysis")act)inding stage o) syste analysis"

(hat are soe e


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3esource Utili#ation Analysis3esource Utili#ation Analysis

(or6 easureent inoles )our basic steps"(or6 easureent inoles )our basic steps"

1" denti)y the tas6s"1" denti)y the tas6s"

2" btain tie estiates )or per)oring the tas6s"2" btain tie estiates )or per)oring the tas6s"

3" &d9ust these tie estiates"3" &d9ust these tie estiates"

4" &naly.e re!uireents based on these data"4" &naly.e re!uireents based on these data"


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3esource Utili#ation Analysis3esource Utili#ation Analysis

$&erage tie/unit C dle tie/unit%$&erage tie/unit C dle tie/unit%//&erage olue D #otal tas6 tie&erage olue D #otal tas6 tie

#otal tie aailable E #otal tas6 tie#otal tie aailable E #otal tas6 tieD +apacity utili.ationD +apacity utili.ation


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ecision Analysis Techniquesecision Analysis Techniques

'ecision to be ade'ecision to be ade

+onditions that can occur+onditions that can occur

Path to be )ollowed )or each conditionPath to be )ollowed )or each condition


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!ranching Ta"le &ormat!ranching Ta"le &ormat

CodeCode

equal toequal to

&o to&o to!nconnector!nconnector

referencereference

11 22 33

!nconnector!nconnector

referencereference

44


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ecision Ta"le &ormatecision Ta"le &ormat

+ondition stub+ondition stub

&ction stub&ction stub

)) -- ,, 00 ??!f1!f1

hen1hen1

able itleable itle )ules)ules

+ondition entry+ondition entry

&ction entry&ction entry

ecision Ta"le forecision Ta"le for


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ecision Ta"le forecision Ta"le for

Processing /a"or istri"utionProcessing /a"or istri"ution

3ine3ine

((

22

(4(4

((((

(2(2

((

(-(-

Condition action )uleCondition action )ule

( )egular hours( )egular hours

( "vertime hours( "vertime hours

( *hift bonus hours( *hift bonus hours

)egular dollars)egular dollars

"vertime dollars"vertime dollars

*hift dollars*hift dollars

'rror no shift or "'rror no shift or "

5est record5est record

11

66

66

66

22

77

77

55

33

77

55

66

44

77

77

55

55

55

66

66

77

55

!!

55

66

""

55!f!f

henhen

&o to 7 % 8%unction9: ) 8)ule, same table9: 8able9&o to 7 % 8%unction9: ) 8)ule, same table9: 8able9


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#nd o$ %ha&ter#nd o$ %ha&ter

22

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CH02 Systems Techniques and Documentation