CH08

Chapter Overview

• Overview of Documenting Systems and Processes in Accounting Information Systems (AIS).

• Importance of documenting processes and systems.

• Various documentation techniques.

• Methods to document business processes and data flows.

Chapter Preview

• Purpose of Documentation: Why businesses document processes and systems.

• Types of Documentation: Different techniques for documenting processes.

• Process Documentation: Steps to effectively document business processes and information flows.

• Data Movement Documentation: How to document the movement of data in company systems.

Learning Objectives

Goals of Documenting Systems and Processes

• Understand the importance and objectives behind documentation.

Documentation Techniques

• Differentiate between various techniques for documenting processes.

Flowchart Illustration

• Learn how to use flowcharts to represent systems and business processes.

Documenting Systems & Processes

• Definition: Documentation refers to formal records that describe systems or processes.

• Reasons for Documentation:

  • Compliance with laws and regulations.

  • Troubleshooting and maintenance activities.

  • Ensuring consistency in employees' work and training.

  • Capturing information for process improvements.

  • Evaluating internal control activities.

Levels of Documentation

• Hierarchy of Documentation:

  • Structured representation starting from technical system details to user tutorials.

• Types:

  • Systems Documentation: Offers an overview and detailed insight into the computer systems.

  • Program Documentation: Detailed analysis of the program logic, useful for troubleshooting.

  • Operator Documentation: Necessary for program execution and operational guidance.

  • User Documentation: Content aimed at users to assist them in effectively utilizing the systems.

Systems Documentation

• Primary Users: Developers and auditors.

• Elements Captured:

  • System architecture and technical design.

  • User interface and operational logic.

  • Data inputs, outputs, and interactions with other systems.

• Forms of Documentation:

  • Narrative descriptions, flowcharts, data flow diagrams, ERDs.

Program Documentation

• Description: Involves the logic of the program and helping programmers troubleshoot issues.

• Primary Users: Programmers.

• Elements Captured:

  • Programming logic, information output, program source code.

• Forms of Documentation:

  • Flowcharts, source code listings, record layouts, ERDs.

Operator Documentation

• Purpose: Information necessary for executing the program.

• Primary Users: Computer operators.

• Elements Captured:

  • Required equipment, execution commands, error messages, and troubleshooting guidelines.

• Forms of Documentation:

  • Narrative descriptions, flowcharts.

User Documentation

• Objective: To ensure systems users are successful in utilizing the system.

• Primary Users: End users and auditors.

• Elements Captured:

  • System functionality, frequently asked questions, common error resolutions.

• Forms of Documentation:

  • Narrative descriptions, flowcharts.

Benefits of Documentation

• Enhances knowledge transfer and provides standardized processes.

• Facilitates process improvements and effective audits.

Documentation Techniques

• Purpose: Documentation used to create, capture, evaluate, and audit processes in AIS.

• Forms of Documentation:

  • Overall business documentation, systems and processes documentation, and data documentation.

Organizational Structures

• Types: Tall (vertical) and flat (horizontal) organizational structures.

• Usage: Organizational charts (org charts) depict employee relationships and reporting lines.

Documenting Processes and Systems

• Format: Narrative descriptions or flowcharts.

• Recommendation: Use narratives for less critical items and flowcharts for critical processes.

Flowcharts

• Description: Illustrate actions and movements in a system or process.

• Types: Document flowcharts, systems flowcharts, program flowcharts, process flowcharts.

Business Process Model and Notation (BPMN)

• Purpose: Document business processes from start to finish.

• Comparison: Similarities between BPMN and process flowcharts.

Data Flow Diagrams (DFDs)

• Definition: Graphical representation of data flow in information systems.

• Advantages: Easier comprehension of data flow, facilitates understanding for new employees and auditors.

Entity Relationship Diagrams (ERDs)

• Purpose: Graphical illustration of database tables and relations.

• Types of ERDs: Conceptual, logical, and physical.

DFD Levels

• Level 0: High-level overview of data flows (context diagram).

• Level 1: Highlights main functions and processes in detail.

• Level 2: Most detailed, breaks processes into subprocesses.