Chapter Six

Documentation

Data Flow Diagrams & Flowcharts

• Diagrams, Flowcharts, Tables

• Explain the system

• Help identify internal control weaknesses

• Provide evidence in lawsuits

Internal Control• Specific document flows

• Authorized check-signers

• PO approval

• Payroll approval

• QC

• Summarized in the Accounting Procedures Manual

Diagrams and Flow Charts (IPO)

• Data Flow Diagram (DFD)

• Document Flowchart Diagram

• Computer System Flowchart– Equipment Configuration Diagram

• Program Flowcharts

• Decision Tables

• Entity-Relation Diagrams (ER and REA)

Data and Document Flows

• Data Flow Diagram (DFD)– level zero is a “context diagram”– bubble chart– flow of data, not documents

• Document Flowchart Diagram– flow of documents among

responsibility centers or departments

Hardware and Software Analysis

• Computer System Flowchart– Equipment Configuration Diagram

• Program Flowcharts– IPO from each line of software code

• Decision Tables– tabular presentation of program flowchart

ER Diagrams

• Entity-Relation Diagrams (ER or ERD)

• aka REA diagrams– relationships of resources, events, & agents– covered in chapter six

• Confused with ERP– enterprise resource planning