Solution Manual for Accounting Information Systems 11th
Edition by Bodnar
Link download full:
http://testbankair.com/download/solution-manual-for-accounting-
information-systems-11th-edition-by-bodnar/
Chapter 2
SYSTEMS TECHNIQUES AND DOCUMENTATION
TEACHING TIPS
I normally introduce flowcharting symbols with simple examples on the board.
I first introduce a very simple manual flowchart involving only three symbols.
An example would be the preparation of a sales order. This would show a
customer order coming into the process and a completed sales order coming out.
Then I mention how computer symbols could be added.
From experience, I have discovered that the single most important thing for
students to learn in analytical flowcharting is the sandwich rule. About 90% of all
mistakes seem to involve a violation of this rule. The second largest problem
involves separating various functions (e.g., sales, credit, shipping, and so on) into
columns.
I've discovered students all seem to do about the same when I place complicated
flowcharting problems on exams. For this reason, I now ask mostly short answer
questions about flowcharting on exams.
I've found it important to emphasize the distinction between the types of
documentation tools used by systems developers and auditors.
With logical data flow diagrams (DFD), it's interesting to discuss how developers
go from an existing system to a new system. They begin with an existing
analytical flow chart, turn it into a DFD, modify the DFD, and then generate a new
analytical flowchart.
It’s worth taking some time to discuss the BPMN, as this is used in Chapters 7-
9 to document the basic transaction cycles.
11
,12 2 Systems Techniques and Documentation
USERS OF SYSTEMS TECHNIQUES
Systems techniques are tools used in the analysis, design, and documentation of
system and subsystem relationships. They are used by accountants who do
systems work, either internally for their company or externally as consultants or
auditors. Most auditing engagements are divided into two basic components: the
interim audit, which involves internal control evaluation, and the financial
statement audit, which involves substantive testing. Substantive testing is the
direct verification of financial statement figures, placing such reliance on internal
control as the results of the interim audit warrant.
Internal Control Evaluation. Analytic flowcharts, document
flowcharts, and forms distribution charts may be used by auditors to
analyze the distribution of documents in a system. Several other system
techniques, such as questionnaires and matrix methods, might also be
used in the evaluation of internal controls.
Compliance Testing. Auditors undertake compliance testing to confirm the
existence, assess the effectiveness, and check the continuity of operation of
internal controls on which reliance is to be placed.
Working Papers. Working papers are the records kept by an auditor of the
procedures and tests applied, the information obtained, and conclusions
drawn during an audit engagement. Auditors use systems techniques to
document and analyze the content of working papers. Internal control
questionnaires, analytic flowcharts, and system flowcharts appear frequently
in working papers because they are commonly used by auditors in the
evaluation of internal controls. Data flow diagrams, HIPO charts, program
flowcharts, branching and decision tables, and matrix methods might appear
in working papers if they are part of the documentation of a system that is
being reviewed.
Use of Systems Techniques in Systems Development
A systems development project generally consists of three phases:
systems analysis, systems design, and systems implementation.
Systems Analysis. Logical data flow diagrams and analytic flowcharts are
helpful in giving an overall picture with regard to transaction processing
within the organization.
Systems Design. Systems design formulates a blueprint for a
completed system.
Systems Implementation. Systems implementation involves the actual
carrying out of the design plan.
, Systems Techniques and Documentation 2 13
Use of Systems Techniques by Sarbanes-Oxley Act Compliance Participants
System documentation is the underpinning support of the internal control and
process documentation requirements that have been set by the Sarbanes-Oxley
Act (SOX).
SYSTEMS TECHNIQUES
Flowcharts are probably the most common systems technique. A flowchart is a
symbolic diagram that shows the data flow and sequence of operations in a system.
Flowcharting Symbols. The basic symbols include the input/output symbol, the
process symbol, the flowline symbol, and the annotation, comment symbol. The
flowline symbol is used to link other symbols.
Specialized input/output symbols may represent the I/O function and, in
addition, denote the medium on which the information is recorded, or the
manner of handling the information, or both. If no special symbol exists,
the basic I/O symbol is used.
Specialized process symbols represent the processing function and, in
addition, identify the specific type of operation to be performed on the
information. If no specialized symbol exists, the basic process symbol
is used.
The additional symbols are used to clarify a flowchart or to make the
flowcharting of a complete process more convenient.
Symbol Use in Flowcharting
Normal direction of flow is from left to right and top to bottom.
IPO and HIPO Charts
IPO and HIPO charts are used primarily by systems development personnel. A
HIPO chart contains two segments: the hierarchy chart that factors the processing
task into various modules or subtasks and an IPO chart to describe the input-
process-output requirements of each module. The hierarchy chart describes the
overall system and provides a "table of contents" to the detailed IPO charts,
usually through a numbering scheme.
Systems and Program Flowcharts
Systems flowcharts are associated with the analysis phase of a systems project and
program flowcharts with the design phase. A program flowchart is the design step
between overall system design and coding the system for computer processing.
A systems flowchart identifies the overall or broad flow of operations in a
system.
Edition by Bodnar
Link download full:
http://testbankair.com/download/solution-manual-for-accounting-
information-systems-11th-edition-by-bodnar/
Chapter 2
SYSTEMS TECHNIQUES AND DOCUMENTATION
TEACHING TIPS
I normally introduce flowcharting symbols with simple examples on the board.
I first introduce a very simple manual flowchart involving only three symbols.
An example would be the preparation of a sales order. This would show a
customer order coming into the process and a completed sales order coming out.
Then I mention how computer symbols could be added.
From experience, I have discovered that the single most important thing for
students to learn in analytical flowcharting is the sandwich rule. About 90% of all
mistakes seem to involve a violation of this rule. The second largest problem
involves separating various functions (e.g., sales, credit, shipping, and so on) into
columns.
I've discovered students all seem to do about the same when I place complicated
flowcharting problems on exams. For this reason, I now ask mostly short answer
questions about flowcharting on exams.
I've found it important to emphasize the distinction between the types of
documentation tools used by systems developers and auditors.
With logical data flow diagrams (DFD), it's interesting to discuss how developers
go from an existing system to a new system. They begin with an existing
analytical flow chart, turn it into a DFD, modify the DFD, and then generate a new
analytical flowchart.
It’s worth taking some time to discuss the BPMN, as this is used in Chapters 7-
9 to document the basic transaction cycles.
11
,12 2 Systems Techniques and Documentation
USERS OF SYSTEMS TECHNIQUES
Systems techniques are tools used in the analysis, design, and documentation of
system and subsystem relationships. They are used by accountants who do
systems work, either internally for their company or externally as consultants or
auditors. Most auditing engagements are divided into two basic components: the
interim audit, which involves internal control evaluation, and the financial
statement audit, which involves substantive testing. Substantive testing is the
direct verification of financial statement figures, placing such reliance on internal
control as the results of the interim audit warrant.
Internal Control Evaluation. Analytic flowcharts, document
flowcharts, and forms distribution charts may be used by auditors to
analyze the distribution of documents in a system. Several other system
techniques, such as questionnaires and matrix methods, might also be
used in the evaluation of internal controls.
Compliance Testing. Auditors undertake compliance testing to confirm the
existence, assess the effectiveness, and check the continuity of operation of
internal controls on which reliance is to be placed.
Working Papers. Working papers are the records kept by an auditor of the
procedures and tests applied, the information obtained, and conclusions
drawn during an audit engagement. Auditors use systems techniques to
document and analyze the content of working papers. Internal control
questionnaires, analytic flowcharts, and system flowcharts appear frequently
in working papers because they are commonly used by auditors in the
evaluation of internal controls. Data flow diagrams, HIPO charts, program
flowcharts, branching and decision tables, and matrix methods might appear
in working papers if they are part of the documentation of a system that is
being reviewed.
Use of Systems Techniques in Systems Development
A systems development project generally consists of three phases:
systems analysis, systems design, and systems implementation.
Systems Analysis. Logical data flow diagrams and analytic flowcharts are
helpful in giving an overall picture with regard to transaction processing
within the organization.
Systems Design. Systems design formulates a blueprint for a
completed system.
Systems Implementation. Systems implementation involves the actual
carrying out of the design plan.
, Systems Techniques and Documentation 2 13
Use of Systems Techniques by Sarbanes-Oxley Act Compliance Participants
System documentation is the underpinning support of the internal control and
process documentation requirements that have been set by the Sarbanes-Oxley
Act (SOX).
SYSTEMS TECHNIQUES
Flowcharts are probably the most common systems technique. A flowchart is a
symbolic diagram that shows the data flow and sequence of operations in a system.
Flowcharting Symbols. The basic symbols include the input/output symbol, the
process symbol, the flowline symbol, and the annotation, comment symbol. The
flowline symbol is used to link other symbols.
Specialized input/output symbols may represent the I/O function and, in
addition, denote the medium on which the information is recorded, or the
manner of handling the information, or both. If no special symbol exists,
the basic I/O symbol is used.
Specialized process symbols represent the processing function and, in
addition, identify the specific type of operation to be performed on the
information. If no specialized symbol exists, the basic process symbol
is used.
The additional symbols are used to clarify a flowchart or to make the
flowcharting of a complete process more convenient.
Symbol Use in Flowcharting
Normal direction of flow is from left to right and top to bottom.
IPO and HIPO Charts
IPO and HIPO charts are used primarily by systems development personnel. A
HIPO chart contains two segments: the hierarchy chart that factors the processing
task into various modules or subtasks and an IPO chart to describe the input-
process-output requirements of each module. The hierarchy chart describes the
overall system and provides a "table of contents" to the detailed IPO charts,
usually through a numbering scheme.
Systems and Program Flowcharts
Systems flowcharts are associated with the analysis phase of a systems project and
program flowcharts with the design phase. A program flowchart is the design step
between overall system design and coding the system for computer processing.
A systems flowchart identifies the overall or broad flow of operations in a
system.
