Exam 2 (ch 3) Flashcards
(50 cards)
Why Document Systems?
- Accountants must be able to read the documentation and understand how a system works (e.g. Auditors need to assess risk)
- The Sarbanes-Oxley Act (SOX) requires management to assess internal controls and auditors to evaluate the assessment.
- Used for systems development and changes
Business Process Diagrams
- Is a visual way to represent the activities in a business process.
- The intent is that all business users can easily understand the process from a standard notation (BPMN: Business Process Modeling Notation)
- Can show the organizational unit performing the activity.
BPMN
Business Process Modeling Notation
Business Process Diagram Symbols
- Start/Begin
- End
- An activity in a process
- Decision
- Flow
- Annotation information
Start/Begin
The start or beginning of a process is represented by a small circle.
END
The end of a process is represented by a small bolded circle.
An Activity in a process
An activity in a process is represented by a rounded-edge rectangle. An explanation of the activity is placed inside the rectangle
Decision
A decision made during the process is represented by a diamond. An explanation of the decision is placed inside the symbol
Flow
The flow of data or information is indicated by an arrow
Annotation Information
Information that helps explain a business process is entered in the BPD and, if needed, a bolded dashed arrow is drawn from the explanation to the symbol
Guidelines for Drawing Business Process Diagrams
- Identify and understand the business process
- Decide the level of detail (Summary or detailed)
- Organize diagram (as many rows needed to explain the process)
- Enter each business process (Beginning and ending)
- Draw a rough sketch, refine, and finalize.
Flowcharts
Describe an information system showing:
- Inputs and outputs
- Information activities (Processing data)
- Data storage
- Data flows
- Decision steps
Key strengths of flowcharts
They can easily capture control via decision points, and show manual vs automated processes.
3 ways to document Internal Controls
1) Write a narrative (easy to do, but hard to review)
2) Draw a flowchart (Easy to review, but hard to do)
3) Fill out a questionnaire with the client (easy to do, but there’s overconfidence in the client’s answers. You will miss something)
Common Flowchart Symbols
(Input/Output Symbols)
-Document
- Multiple copies of one paper document
- Electronic Output
- Electronic data entry
- Electronic Input and output device
Document
An electronic or paper document or report
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
Electronic Output
Information is displayed by an electronic output device such as a terminal, monitor, or screen.
Electronic Data entry
Electronic data entry devices such as a computer, terminal, tablet, or phone.
Electronic Input and output device
The electronic data entry and output symbols are used together to show a device used for both
Common Flowchart Symbols
(Processing Symbols)
- Computer Processing
- Manual Operating
Computer Processing
A computer-performed processing function; usually results in a change in data or information
Manual operating
A processing operation performed manually
(Human error)
Common Flowchart Symbols
(Storage Symbols)
-Database
- Magnetic Tape
- Paper document file
- Journal/ledger
