Flowcharts

Question 1

What are flowcharts>

Answer 1

Generally a graphic illustration of the physical flow of information through the accounting system

Question 2

What do flowlines represent?

Answer 2

Sequences of processes, and other symbols represent the inputs and outputs to a process

Question 3

Advantage of flowcharts (experienced)

Answer 3

Can be prepared quickly by an experienced user

Question 4

Advantage of flowcharts (easy)

Answer 4

Easy to follow and review due information being presented in a standard form

Question 5

Advantage of flowcharts (system)

Answer 5

Ensures system is recorded in entirety, as all document flows have to be traced from beginning to end

Question 6

Advantage of flowcharts (eliminate)

Answer 6

Eliminate need for extensive narrative and can be considerable help in highlighting the sallent points of control and deficiencies in the system

Question 7

Disadvantage of flowcharts (standard)

Answer 7

Most suitable for describing standard systems, Procedures with unusual transactions normally have to be recorded using narrative notes

Question 8

Disadvantage of flowcharts (amendment)

Answer 8

Major amendment is difficult without redrawing

Question 9

Disadvantage of flowcharts (wasted)

Answer 9

Time can sometimes be wasted by charting areas that are of no audit significance