Chapter 3 Homework Questions 1-3 & Pro.6
1. A DFD is a representation of which of the following?
a. relationship among modules, data, and programs of an AIS
b. flow of data in an organization
c. decision rules in a computer program
d. computer hardware configuration
2. Documentation methods such as DFDs and flowcharts save both time and money, adding
value to an organization.
a. True b. False
3. Which of the following statements is false?
a. Flowcharts make use of many symbols.
b. A flowchart emphasizes the flow of documents or records containing data.
c. DFDs help convey the timing of events.
d. Both a and b are false.
6. As the internal auditor for No-Wear Products, you have been asked to document the Company’s payroll processing system.
Based on your documentation, No-Wear hopes to develop a plan for revising the current system to eliminate unnecessary delays
in paycheck processing. The head payroll clerk explained the system: The payroll processing system at No-Wear Products is
fairly simple. Time data are recorded in each department using time cards and clocks. It is annoying, however, when people
forget to punch out at night, and we have to record their time by hand. At the end of the period, our payroll clerks enter the time
card data into a payroll file for processing. Our clerks are pretty good-though I've had to make my share of corrections when they
mess up the data entry. Before the payroll file is processed for the current period, human resources sends us personnel changes,
such as increases in pay rates and new employees. Our clerks enter this information into the payroll file. Usually, when mistakes
get back to us, it's because human resources is recording the wrong pay rate or an employee has left and the department forgets to
remove the record. The data are processed and individual employee paychecks are generated. Several reports are generated for
management-though I don't know what they do with them. In addition, the government requires regular federal and state
withholding reports for tax purposes. Currently, the system generates these reports automatically, which is nice.
a. Prepare a context diagram and level 0 DFD to document the payroll processing system
at No-Wear Products.
b. Prepare a document flowchart to document the payroll processing system at No-Wear
Products.
Employee
Time Card Data
Employee
Paychecks
Operating
Documents
Payroll
Processing
System
Internal
Reports
Management
Human
Resources
Department
Personnel Data
Withholding
Reports
Operating
Departments
Time
Card
Data
Governmental
Agencies
Human Resources
Department
Personnel
Changes
1.0
Process
Employee
Timecards
2.0
Update
Payroll File
Payroll File
4.0
Generate
Payroll
Reports
3.0
Generate
Paycheck
Internal
Reports
Employee
Withholding
Reports
Pay
check
Management
Governmental
Agencies
No-Wear Products-Payroll
Employees in Functional
Department
Payroll
Time Card
Record Time Data
Record
Time
Completed Time
Card
Enter Time Data
Process Payroll
Changes
Completed Time
Card
Enter Payroll
Changes
Payroll File
From Human
Resource Dept
Payroll Changes
N
Process Payroll,
Prepare Checks
and Reports
Paycheck
N
Employee
Management
Report
Management
Federal Tax
Report
Stat Tax Report
Goverrnment