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