ACC 341 Ch. 3

Guidelines for Preparing Flowcharts:

*(1) Understand the system.* Develop this understanding by interviewing users, developers, and management or having them complete a questionnaire; by reading a narrative description of the system; or by walking through system transactions. *(2) Identify the entities to be flowcharted.* Identify departments, job functions, and external parties. Identify business processes, documents, data flows, and data processing procedures. *(3) Organize flowchart. Design the flowchart so that data flows from top to bottom and from left to right. Where appropriate, ensure that all procedures and processes are in proper order. Show where documents or processes originate, where data is processed, and where data is stored and sent. Show the final disposition of all documents to prevent loose ends that leave the reader dangling. Show data entered into or retrieved from a database as passing through a processing operation (a computer program) first. In document flowcharts, divide the flowchart into columns with labels. *(4) Clearly label all symbols.* Write a description of the source, input, process, output, or destination inside the symbol. Use arrowheads on all flow lines. *(5) Page connectors.* If a flowchart cannot fit on a single page, clearly number the pages and use off-page connectors to move from one page to another. Where desired, on-page connectors can be used to avoid excess flow lines and to produce a neat-looking page. Clearly label all connectors to avoid confusion. *(6) Draw a rough sketch of the flowchart.* Be more concerned with capturing content than with making a perfect drawing. Few systems can be flowcharted in a single draft. Review it with the people familiar with the system. Make sure all uses of flowcharting conventions are consistent. *(7) Draw a final copy of the flowchart.* Place the flowchart name, date, and preparer's name on each page.

Guidelines for Drawing a DFD

*1) Understand the system.* Develop this understanding by observing organization data flows, observing and interviewing those who use and process the data or having them complete a questionnaire; by reading a narrative description of the system; or by walking through system transactions. *2) Ignore certain aspects of the system.* A DFD is a diagram of the origins, flow, transformation, storage, and destinations of data. Only very important error paths are included; unimportant error paths are ignored. Determining how the system starts and stops is not shown. *3) Determine system boundaries.* Determine what to include and exclude. Include all relevant data elements, because excluded items will not be considered during system development. *4) Develop a context diagram.* A context diagram depicts system boundaries. In the diagram's center is a circle with the name of the system. Outside entities the system interacts with directly are in boxes on either side, connected by data flows depicting the data passed between them. DFDs in successively more detail depict data flows inside the system. *5) Identify data flows.* Identify all data flows (significant movement of data) entering or leaving the system, including where the data originate and their final destination. All data flows come from and go to a transformation process, a data store (file), or a source or destination. Data flows can move in two directions, shown as a line with arrows on both ends (see G in Figure 3-3). *6) Group data flows.* A data flow can consist of one or more pieces of datum. Data elements that always flow together should be grouped together and shown as one data flow until they are separated. If the data do not always flow together, show them as separate data flows. *7) Identify transformation processes.* Place a circle wherever work is required to transform one data flow into another. All transformation processes should have one or more incoming and outgoing data flows. *8) Group transformation processes.* Transformation processes that are logically related or occur at the same time and place should be grouped together. Do not combine unrelated items into a single transformation process. If data are not processed together, or are sometimes processed differently, separate them. *(9) Identify all files or data stores.* Identify each temporary or permanent data repository, and identify each data flow into and out of it. *(10) Identify all data sources and destinations.* Include them on the DFD. *(11) Name all DFD elements.* Except for data flows into or out of data stores (the data store name is usually sufficient to identify the data flow), data elements should be given unique and descriptive names representing what is known about them. Naming data flows first forces you to concentrate on the all-important data flows, rather than on the processes or stores. Processes and data stores typically take their names from the data inflows or outflows. Choose active and descriptive names, such as "update inventory" and "validate transaction," rather than "input data" or "update process." Process names should include action verbs such as update, edit, prepare, reconcile, and record. *(12)Subdivide the DFD.* A cluttered DFD is hard to read and understand. If you have more than five to seven processes on a page, decompose the context diagram into high-level processes. Explode these high-level processes into successively lower-level processes. *(13) Give each process a sequential number.* Giving each process a sequential number (lower to higher) helps readers navigate among the DFD levels. *(14) Refine the DFD.* Work through data flows several times. Each subsequent pass helps refine the diagram and identify the fine points. Organize the DFD to flow from top to bottom and from left to right. *(15) Prepare a final copy.* Do not allow data flow lines to cross each other; if necessary, repeat a data store or destination. Place the name of the DFD, the date prepared, and the preparer's name on each page.

Sarbanes-Oxley (SOX) states that:

*Management is responsible for establishing and maintaining an adequate internal control structure must assess the effectiveness of the internal control system *auditor must evaluate management's assessment of internal control structure; attest to the statement's accuracy

(FLOWCHART SYMBOLS) (Type: Flow and Miscellaneous Symbols) Terminal

A beginning, end, or point of interruption in a process; also used to indicate an external party

(FLOWCHART SYMBOLS) (Type: Processing Symbols) Computer Processing

A computer-performed processing function; usually results in a change in data or information

(FLOWCHART SYMBOLS) (Type: Processing Symbols) Manual Operation

A processing operation performed manually

(FLOWCHART SYMBOLS) (Type: Storage Symbols) Magnetic Tape

Data stored on a ________; tapes are popular back-up storage mediums.

Flowchart

An analytical technique that uses a standard set of symbols to describe pictorially some aspect of an information system in a clear, concise, and logical manner. Describe an Information System showing: 1. Inputs and Outputs 2. Information activities (processing data) 3. Data Storage 4. Data flows 5. Decision Steps

(FLOWCHART SYMBOLS) (Type: Flow and Miscellaneous Symbols) Off-Page Connector

An entry from, or an exit to, another page

(FLOWCHART SYMBOLS) (Type: Flow and Miscellaneous Symbols) On-Page Connector

Connects the processing flow on the same page; its usage avoids lines crisscrossing a page.

(FLOWCHART SYMBOLS) (Type: Storage Symbols) Database

Data stored electronically in a ________.

(FLOWCHART SYMBOLS) (Type: Flow and Miscellaneous Symbols) Document or Processing Flow

Direction of processing or document flow; normal flow is down and to the right

(FLOWCHART SYMBOLS) (Type: Storage Symbols) Paper document file

File of paper documents; letters indicate file-ordering sequence: N = numerically, A = alphabetically, D = by date, A/D = alphabetically and by date

Context Diagram

Highest-level DFD; a summary-level view of a system, showing the data processing system, its input(s) and output(s), and their sources and destinations. ONLY 1 PROCESS (circle) INVOLVED

(FLOWCHART SYMBOLS) (Type: Input/Output Symbols) Multiple copies of one paper document

Illustrated by overlapping the document symbol and printing the document number on the face of the document in the upper right corner.

(Types of Flowcharts) Program Flowchart

Illustrates the sequence of logic in the system process; depicts the logic use din a process shown on a system flowchart

(FLOWCHART SYMBOLS) (Type: Input/Output Symbols) Electronic Output

Information displayed by an _____________ device such as a terminal, monitor, or screen

(DFD) Data Flows

Movement of data among processes, stores, sources, and destinations data moving between stores an a source or destination must go through a process.

Documentation

Narratives, flowcharts, diagrams, and other written materials that explain how a system works. ex: input, process, storage, output, and controls used for system design and system understanding

(FLOWCHART SYMBOLS) (Type: Storage Symbols) Journal/Ledger

Paper-based accounting _______________________

TO PRACTICE DFD DIAGRAMS: See ch. 3 part 1 post class powerpoint slides 28-30

TO PRACTICE DFD DIAGRAMS: See ch. 3 part 1 post class powerpoint slides 28-30

SEE CHAPTER 12 POST CLASS POWERPOINT SLIDES 3-6 TO PRACTICE FLOWCHART DIAGRAM

SEE CHAPTER 12 POST CLASS POWERPOINT SLIDES 3-6 TO PRACTICE FLOWCHART DIAGRAM

(Types of Flowcharts) Document Flowchart

Shows the flow of documents and data for a process; useful in evaluating internal controls

(FLOWCHART SYMBOLS) (Type: Input/Output Symbols) Electronic input and output device

The ____________ symbols are used together to show a device used for both.

(DFDs) Data Sources/Destinations

The square box symbol represents where the data is coming from (source) and where it ends (destination). An example from a revenue cycle perspective is that the customer would be a data source.

(DFDs) Processes

Transform the data in some way. This can be at a high "context" level such as "process revenue cycle," or it could be done at a more detailed level such as "sales order entry"

(FLOWCHART SYMBOLS) (Type: Flow and Miscellaneous Symbols) Communication Link

Transmission of data from one geographic location to another via communication lines

(DFDs) Internal Control

Triangle used in a DFD identifies ____ associated with the process.

(FLOWCHART SYMBOLS) (Type: Input/Output Symbols) Electronic Data Entry

_______________ device such as a computer, terminal, tablet, or phone

(FLOWCHART SYMBOLS) (Type: Flow and Miscellaneous Symbols) Decision

a decision-making step

Data Flow Diagram (DFD)

a graphical description of data sources, data flows, transformation processes, data storage, and data destinations i.e., they graphically describe the flow of data within an organization visually simple and can be used to represent the same process at a high abstract (summary) or detailed level. hierarchical in nature.

(FLOWCHART SYMBOLS) (Type: Flow and Miscellaneous Symbols) Annotation

addition of descriptive comments or explanatory notes as clarification

(FLOWCHART SYMBOLS) (Type: Input/Output Symbols) Document

an electronic or paper document or report

(Types of Flowcharts) System Flowchart

depicts the data processing cycle for a process; used to describe data flows and procedures

Key strengths of Flowcharts

easily capture control via decision points show manual vs automated processes

(DFDs) Data Stores

the storage of data

Narrative Description

written, step-by-step explanation of system components and how they interact