Data Flow Diagrams

Chapter 3 Documenting Accounting Information Systems

INTRODUCTION WHY DOCUMENTATION IS IMPORTANT DOCUMENT AND SYSTEM FLOWCHARTS
Document Flowcharts Guidelines for Drawing Document Flowcharts System Flowcharts Guidelines for Drawing System Flowcharts

PROBLEMS CASE ANALYSES
The Berridge Company FreezeTime, Inc. The Dinteman Company Lois Hale and Associates

PROCESS MAPS AND DATA FLOW DIAGRAMS
Process Maps Guidelines for Drawing Process Maps Data Flow Diagrams Guidelines for Drawing Data Flow Diagrams

REFERENCES AND RECOMMENDED READINGS ANSWERS TO TEST YOURSELF

OTHER DOCUMENTATION TOOLS
Program Flowcharts Decision Tables Software Tools for Graphical Documentation and SOX Compliance

After reading this chapter, you will: 1. Understand why documenting an AIS is important. 2. Be able to draw simple document flowcharts and explain how they describe the flow of data in AISs. 3. Be able to draw simple document flowcharts, system flowcharts, process maps, and data flow diagrams. 4. Know how program flowcharts and decision tables help document AISs. 5. Be able to explain the importance of end-user documentation. 6. Be aware of software available for documenting AISs and helping companies comply with the Sarbanes-Oxley Act.

END-USER COMPUTING AND DOCUMENTATION
The Importance of End-User Documentation Policies for End-User Computing and Documentation

AIS AT WORK—FLOWCHARTS HELP RECOVER EMBEZZLED ASSETS SUMMARY KEY TERMS YOU SHOULD KNOW TEST YOURSELF DISCUSSION QUESTIONS

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PART ONE / An Introduction to Accounting Information Systems

‘‘Although documentation of [business] processes needs to be detailed, it also must be clear and easy to follow . . . .If people cannot easily explain it, or someone can’t pick up the documentation and understand it, you have not successfully completed the task.’’ Regina Baraban, ‘‘Look Out for SOX’’ Meetingsnet.com Vol. 24, No. 2, (February 2005), pp. 23–24.

INTRODUCTION
Documentation explains how AISs

References: AND RECOMMENDED READINGS Baraban, Regina. ‘‘Look Out for SOX’’ Meetingsnet.com Vol. 24, No. 2 (February 2005), pp. 23–24. Bradford, Marianne, Sandra B. Richtermeyer, & Douglas F. Roberts. ‘‘System Diagramming Techniques: An Analysis of Methods Used in Accounting Education and Practice,’’ Journal of Information Systems Vol. 21, Iss.1 (Spring 2007), pp. 173–213. Cozad, Matthew A., ‘‘Top 5 SOX Best Practices for Small Companies’’ Strategic Finance Vol. 87, No. 4 (October 2005), pp. 1–7. Campbell, Gillian. ‘‘Flowing Through a Process’’ Quality Vol. 43, No. 6 (June 2004), pp. 50–52. Hoffman, Thomas. ‘‘Calibrating Toward Compliance’’ Computerworld Vol. 40, No. 6 (February 6, 2006), pp. 21–24. Hubbard, Larry. ‘‘Limits to Process Documentation’’ Internal Auditor Vol. 62, No. 3 (June 2005), pp. 26–27. Jones, Roberta Ann, Jeffrey J. Tsay, & Kenneth Griggs. ‘‘An Empirical Investigation of the Task Specific Relative Strengths of Selected Accounting and Information Systems Diagramming Techniques’’ Journal of Computer Information Systems Vol. 46, No. 2 (Winter 2005–2006), pp. 99–114. Klamm, Bonnie K., & Marcia L. Weidenmier, ‘‘Linking Business Processes and Transaction Cycles’’ Journal of Information Systems Vol. 18, No. 2 (Fall 2004), pp. 113– 125. 112 PART ONE / An Introduction to Accounting Information Systems Koutoupis, Andreas G., ‘‘Documenting Internal Controls,’’ The Internal Auditor Vol. 64, Iss.5, pp. 23–25. Lehman, Mark W. ‘‘Flowcharting Made Simple’’ Journal of Accountancy, Vol. 190, No. 4 (October 2000), pp. 77–88. Matsumoto, Isao T., John Stapleton, Jacqueline Glass, & Tony Thorpe, ‘‘Use of Process Maps to Develop a Management Briefing Sheet for a Design Consultancy’’ Engineering Construction & Architectural Management Vol. 12, No. 5 (2005), pp. 458–469. Murphy, Michael. ‘‘Demystifying Flowcharts’’ Materials Management in Health Care Vol. 14, No. 8 (August, 2005), p. 52. Panell, Chris. ‘‘Teaching Computer Programming as a Language’’ Tech Directions Vol. 62, No. 8 (March, 2003), pp. 26–27. Paradiso, J., ‘‘The Essential Process: The Quick and Painless Path to Successful Process Mapping,’’ Industrial Engineer, Vol. 35, (April 2003), pp. 46–49. Pojasek, Robert B., ‘‘Putting Hierarchical Process Maps to Work’’ Environmental Quality Management Vol. 15, No. 3 (Spring, 2006), pp. 73–80. Shanker, Sheila. ‘‘Write On’’ Journal of Accountancy Vol. 201, No. 5 (May, 2006), p. 28. Tuggle, Francis D., & Wendy E. Goldfinger ‘‘A Methodology for Mining Embedded Knowledge from Process Maps’’ Human Systems Management Vol. 23, No. 1 (2004), pp. 1–13. Vogt, Nancy. ‘‘Simplifying HIPAA for Staff is One Way to Ensure Good Decisions are Made about Patient Privacy’’ Journal of Health Care Compliance Vol. 7, No. 5 (September/October, 2005), pp. 75–76. ANSWERS TO TEST YOURSELF 1. a 2. c 3. c 4. d 5. c 6. b 7. c 8. d 9. d 10. a