Week 3 - System Documentation I

Question 1

Why do we need systems documentation?

Answer 1

• Many interrelated parts work together in a business process, thus, relying on a verbal description of the processes, would be hard. It is easier to view the information in a visual form.
• If new to an organisation it helps you to figure out where you fit in, what your function is, and the data that flows in and out of your position.

Question 2

What are the benefits of systems documentation?

Answer 2

Helps you to understand and navigate business processes and accounting information systems.
It is useful for tasks such as:
- Business process re-engineering.
- Redesigning user roles
- Auditing

Question 3

What is the importance of system documentation?

Answer 3

• It details the audit trail within the organisation.
• It is the corporate memory of system designs and operations
• It is a visualisation of business processes and data flows.

Question 4

What is a systems documentation?

Answer 4

A process of classifying and annotating texts of business processes showing how each work activity flows from one another, and at which point they interact with the information systems

Question 5

What are the different forms of systems documentation?

Answer 5

• Process map
• Data flow diagram
• System flowchart

Question 6

What is a context diagram?

Answer 6

Depicts the system of interest and its interactions with external entities that provide inputs to, or receive outputs from the system of interest.

Question 7

What is a physical DFD?

Answer 7

Identifies the entity (who or what) performs the data processing activities at any point (where) within a system of
interest.

Question 8

What is a logical DFD?

Answer 8

Describes the sequence of processes (what) that are performed within a system of interest and at which point they interact with external entities.

Question 9

How is systems documentation useful in BPR?

Answer 9

• Useful when an organisation seeks to improve a specific process’s performance,
  particularly during BPR where radical restructuring of the operation is needed.
• Businesses are able to go back and analyse/reflect on the systems documentation to see if any improvements need to be made.
• Process re-engineering helps organisations identify the value-added process and eliminate redundant or wasteful activities e.g., unnecessary data entry

Question 10

What is the role of an accountant in systems documentation?

Answer 10

They have high familiarity with the system therefore:
- Can review and recommend adequate controls if needed.
- Expert identification of issues, and suggestions for modifications.
- Back-up memory installation: to protect financial data from loss or corruption and ensure business continuity in the event of a system failure or disaster.

Question 11

What is the role of systems documentation in regards to auditing?

Answer 11

• Plays a key role in the execution of an external financial statement audit.
• Auditor is concerned with the data handling, process workflow, and inadequacy of internal control procedures that are likely to create material errors.

Question 12

Why do we have so many types of systems documentations?

Answer 12

Each systems documentation technique will at least address one of these questions and in a different manner.
- Who is involved?
- What activities will occur?
- Where do the activities occur?
- Where do the activities fit within the rest of the organisation?

No format is necessarily superior to the other. It depends on what you would like to know about the system.

Question 13

What is the central thing you want to look for when reading system documentation?

Answer 13

The entities (who) and data/documents (what).

Question 14

What is an entity?

Answer 14

Any person or thing involved in flowlines or work activities of a business process.

Question 15

What is an internal entity?

Answer 15

A person or thing that processes or transforms the data within the business process of interest.

Question 16

What is an external entity?

Answer 16

A person or thing that receives the output from a business process or provides inputs into a process.

Question 17

Do data stores/databases use the concept of entity? If so, what’s the definition of data stores?

Answer 17

Yes it does. It is defined as a digital repository for retaining, managing, and distributing data sets that are made and used by an organisation.

Question 18

What is a process narrative?

Answer 18

It is the starting point for systems documentation. It is text-based chronological description of the process. Prepared by observing a process in operation and
interviewing the key participants in the process

Question 19

David is exporting (selling) dairy products to Chen using the AliBaba Information System. What are the entities involved?

Answer 19

• David (internal entity)
• Chen (external entity)
• AliBaba Information System (digital store - internal entity)

Question 20

What are the limitations of the process narrative?

Answer 20

– Writing style
– Subjective interpretation

Question 21

What is the process narrative table?

Answer 21

• Starting point for systems documentation.
• Text-based chronological description of the process (mentions entities, activities undertaken, inputs required for activities, outputs produced by activities).

Question 22

What is a process map?

Answer 22

• An important technique for
  documenting a system
  A simple graphical representation of a
  business process
  – Describe workflow and activities
  – Links and records the areas of responsibility
  – Uncovers decisions that need to be made as part

Question 23

What is a context diagram?

Answer 23

• is a representation of the system of interest and its interactions with external
  entities that provide inputs to, or receive outputs from the system of interest;
  – is an overview of the data flow but does not detail the process;
• Internal entities or processes and data stores are NOT shown
  – clarifies boundaries and external interactions

Question 24

What is a process map?

Answer 24

• A form of system documentation.
• A visual description of a workflow in a business process.

Question 25

What is a data flow diagram?

Answer 25

• A form of system documentation.
• Graphical representations of the data flows that occur within a system of interest.

Question 26

What is a system flowchart?

Answer 26

• A form of system documentation.
• Provides information about the documents and processes performed within the system, as well as who is involved in the system.

Question 27

When balancing DFD’s what should be the same across the types?

Answer 27

• External entities and flows to and from external entity should be the same across the 3 types.
• Physical DFD and logical DFD should have same data stores.