Module 4

Documenting Information
Systems

ACINSY23S: Accounting Information System

Academic Year 2020-2021
Second Semester
Phase 3
Synopsis
This module covers:
 Data Flow Diagrams.

 Flowcharts.
Introduction
 Documentation is:
 Used to understand, explain, evaluate, and improve
complex business processes, information systems,
and internal control.
 Needed to comply with Section 404 of SOX.
 To use a graphical documentation tool, these
steps are followed:
1. Define symbols and rules that will be used.
2. See symbols that are used in each method.
3. Outline how to read diagrams in each method.
4. Prepare diagrams and flowcharts.
Learning Objectives
1. Read and evaluate data flow diagrams.
2. Read and evaluate systems flowcharts.
3. Prepare data flow diagrams from a
narrative.
4. Prepare systems flowcharts from a
narrative.
Reading Systems
Documentation
 Two types of systems documentation:
 Data flow diagrams.
 Systems flowcharts.
Reading Systems
Documentation
 Data flow diagrams (DFDs):
 Show business processes, flows of data within
those processes, and the sources and storage of
the data required for the process.
 Depict systems components.
 Data flows among components, and the sources.
 Destinations.
 Storage of data.
 Use a limited number of symbols.
Reading
Systems
Documentation
Reading Systems
Documentation
Context Diagram
 Context diagram: Least detailed picture of a
system that defines the process being
documented and shows the data flows into
and out of the process to external entities.
 External entities: Those entities (i.e.,
persons, places, or things) outside the
system that send data to, or receive data
from, the system.
Reading Systems
Documentation
Reading Systems
Documentation
Physical Data Flow Diagram
 Physical data flow diagram (DFD): Graphical
representation of a system showing the system’s
internal and external entities, and the flows of
data into and out of these entities.
 Specifies where, how, and by whom a system’s
processes are accomplished.
 Internal entity: An entity within the system that
transforms data.
Reading Systems
Documentation
Reading Systems
Documentation
Logical Data Flow Diagram
 Logical data flow diagram (DFD): Graphical
representation of a system showing the
system’s processes (as bubbles), data
stores, and the flows of data into and out of
the processes and data stores.
 Specifies what activities the system is
performing.
 Logical DFDs portray a system’s activities.
Reading
Systems
Documentation
Reading Systems
Documentation
 Balanced: When two DFDs have equivalent
external data flows.
 Only balanced sets of DFDs (i.e., a context
diagram, a logical DFD, and a physical DFD)
are correct.
 Top-down partitioning: The successive
subdividing (exploding) of logical DFDs.
Reading
Systems
Documentation
Reading Systems Flowcharts
 Systems flowchart: Graphical
representation of a business process,
including information processes, as well as
the related operations processes (people,
equipment, organization, and work activities).
 Presents a logical and physical rendering of
the who, what, how, and where of information
and operations processes.
 Depicts the sequence of activities performed
as business events flow through the process.
Reading
Systems
Flowcharts
Reading Systems Flowcharts
Common Systems Flowcharting Routines
 The following slides show several common
ways of showing processing using system
flowcharting.
 Note the way the columns are set up to
communicate the flow of activities between
processing entities.
Enter document
into computer via
keyboard, edit
input, record
input.
User queries the computer.
Update data store.
Key and key verify data.
Enter document via scanning.
Enter journal in manual accounting system.
Pick and ship goods.
Preparing Systems
Documentation
 How to prepare data flow diagrams and
systems flowcharts.
 Guidelines for creating DFDs and systems
flowcharts.
 Relevant process narrative.
Preparing Data Flow
Diagrams
 Analyze narrative.
 Create a table of entities and activities.
 An activity is any action being performed by
an internal or external entity.
Preparing Data
Flow Diagrams
The Narrative
Preparing Data Flow
Diagrams
Table of Entities and Activities
 Activity:

 Actions related to data (send data, transform

data, file or store data, retrieve data from
storage, or receive data).
 Operations process activities include picking
goods, inspecting goods at a receiving dock,
or counting cash.
Drawing the
Context Diagram
Drawing the Context
Diagram
 Information processing activities: Retrieve
data from storage, transform data, or file data.

DFD guidelines:

1. Include within the system context (bubble)

any entity that performs one or more
information processing activities.
Drawing the Context
Diagram
2. For now, include only normal processing
routines (not exception routines or error
routines) on context diagrams, physical DFDs,
and logical level 0 DFDs.
3. Include in the process documentation all (and
only) activities and entities described in the
systems narrative.
4. When multiple entities operate identically,
depict only one to represent all.
Drawing the Context
Diagram
Drawing the Context
Diagram
Drawing the Current Physical Data Flow Diagram
5. For clarity, draw a data flow for each flow into
and out of a data store. Label each flow with
the activity number that gives rise to the flow or
with a description of the flow.
6. If a data store is logically necessary, include a
data store in the diagrams, even if it not
mentioned in the narrative.
Drawing
the
Context
Diagram
Drawing the Current Logical
Data Flow Diagram
7. Group activities if they occur in the same place
and at the same time.
8. Group activities if they occur at the same time
but in different places.
9. Group activities that seem to be logically
related.
10. To make the DFD readable, use between five
and seven bubbles.
Drawing the Current Logical
Data Flow Diagram
Drawing the Current Logical Data Flow Diagram
Drawing the Current Logical
Data Flow Diagram
Summary of Drawing Data Flow Diagrams
11. A data flow should go to an operations entity square
when only operations process functions are to be
performed by that entity. A data flow should enter an
entity bubble if the operations process entity is to
perform an information processing activity.
12. On a physical DFD, reading computer data stores and
writing to computer data stores must go through a
computer bubble.
13. On a logical DFD, data flows cannot go from higher- to
lower-numbered bubbles.
Drawing the Current Logical
Data Flow Diagram
 Processes called exception routines or error
routines handle required actions for out-of-the-
ordinary (exceptional) or erroneous events data.
 Documented below the level 0 DFD with reject
stubs that indicate exceptional processing must
be performed.
 A reject stub is a data flow assigned the label
“Reject” that leaves a bubble but does not go to
any other bubble or data store. Shown only in
lower-level diagrams.
Preparing Systems Flowcharts
1. Divide the flowchart into columns; one
column for each internal entity and one for
each external entity. Label each column.
2. Flowchart columns should be laid out so that
the flowchart activities flow from left to right.
Minimize crossed lines and connectors.
3. Flowchart logic should flow from top to
bottom and from left to right. For clarity, put
arrows on all flow lines.
Preparing Systems Flowcharts
4. Keep the flowchart on one page, if possible.
Use off-page connectors if multiple pages
are required.
5. Within each column, there must be at least
one manual process, keying operation, or
data store between documents.
6. When crossing organizational lines show a
document at both ends of the flow line
unless the connection is so short that the
intent is unambiguous.
Preparing Systems Flowcharts
7. Documents or reports printed in a computer
facility should be shown in that facility’s
column first. You can then show the
document or report going to the destination
unit.
8. Documents or reports printed by a
centralized computer facility on equipment
located in another organizational unit should
not be shown within the computer facility.
Preparing Systems Flowcharts
9. Processing within an organizational unit on
devices such as a PC, laptop, or
computerized cash register should be shown
within the unit or as a separate column next
to that unit, but not in the central computer
facility column.
10. Sequential processing steps with no delay
between them (and resulting from the same
input) can be shown as one process or as a
sequence of processes.
Preparing Systems Flowcharts
11. The only way to get data into or out of a
computer data storage unit is through a
computer processing rectangle or offline
process square.
12. A manual process is not needed to show the
sending of a document. It should be apparent
from the movement of the document.
13. Do not use manual processes to file
documents. Show documents going into files.
Drawing Systems Flowcharts
Summary of Systems
Flowcharting
 Strike a balance between clarity and clutter by
using annotation judiciously and on-page
connectors whenever flow lines create clutter.
 Avoid crossing lines whenever possible. If you
must, use a “bridge.”
 Document only normal routines and leave
exception routines for another page of the
flowchart.
Documenting Enterprise
Systems
 Moving from a file-based system to an
enterprise database changes the systems
flowchart.
 The central computer would have one data
store (enterprise database), not the current
five computer data stores.
 Other changes would depend on the
organization’s system implementation.
Documenting Enterprise Systems
Summary
 Common techniques used to describe and
analyze business processes are
documentation tools, such as:
 Narratives.
 Tables of entities and activities.
 DFDs.
 Systems flowcharts.
 Each technique has its own purpose,
strengths, and weaknesses.
End of Module 4
Documenting Information Systems
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