CH 3 SYSTEMS DOCUMENTATION TECHNIQUES
Documentation - explains how a system works, including the who, what, when, where, why, and how of data entry,
data processing, data storage, information output, and system controls.
- Narratives, flowcharts, diagrams, and other written materials that explain how a system works.
- supplemented by a narrative description (Written, step-by-step explanation of system
components and how they interact)
Documentation tools are important on the following levels:
1. Able to read documentation to determine how a system works.
2. Evaluate documentation (quality of systems) to identify internal control strengths and weaknesses and
recommend improvements as well as to determine if a proposed system meets the company’s needs.
3. Prepare documentation that shows how an existing or proposed system operates.
4.
SAS 94 requires independent auditors to understand all
Three common systems documentation tools:
1. Data flow diagram (DFD) - a graphical description of data sources, data flows, transformation processes,
data storage, and data destinations
2. Flowchart - a graphical description of a system.
- several types of flow charts:
a. Document flowchart - flow of documents and information between departments or areas
of responsibility
b. System flowchart - relationship among the input, processing, and output in an
information system
c. Program flowchart - the sequence of logical operations a computer performs as it
executes a program.
3. Business Process diagrams - a graphical description of the business processes used by a company
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Accountants use documentation techniques extensively (e.g. auditing)
Sarbanes-Oxley Act (SOX) of 2002 requires an internal control report in public company annual reports that
(1) states that management is responsible for establishing and maintaining an adequate internal
control structure and
(2) assesses the effectiveness of the company’s internal controls.
SOX also specifies that a company’s auditor must evaluate management’s assessment of the company’s
internal control structures and attest to its accuracy
- auditor’s attestation should include a specific notation about significant defects or material
noncompliance found during internal control test
Documentation tools are also used extensively in the systems development process.
Documentation is easier to prepare and revise when a software package is used.
Once a few basic commands are mastered, users can quickly and easily prepare, store, revise, and print
presentation-quality documentation
Data flow diagram
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Data flow diagram (DFD) - graphical description of the flow of data within an organization, including data
sources/destinations, data flows, transformation processes, and data storage
An entity can be both a source and a destination. They are represented by squares, as illustrated by items A
(customer), J (bank), and K (credit manager)
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Data source - entity that produces or sends the data that is entered into a system.
Data destination - The entity that receives data produced by a system.
Data flow - The movement of data among processes, stores, sources, and destinations.
- data go through a data transformation process.
- are labeled to show what data is flowing (only exception: data flow between a process and a data store)
 process - The action that
transforms data into other data
or information.
- represent the transformation
of data
- update receivables process (F) uses remittance (D) and accounts
receivable (H) data to update receivable records and send receivables
data to the credit manager
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Data store - place or medium where system data is stored
- a repository of data.
- data stores (H) are represented by horizontal lines, with the name of the file written inside the lines.
Subdividing the DFD
 DFDs are subdivided into successively lower levels to:
- provide ever-increasing amounts of detail
- Satisfy a variety of levels of differing needs
 context diagram - Highest-level DFD
- a summary-level view of a system, showing the data processing system, its input(s) and
output(s), and their sources and destinations.
The system processes these data and produces:
(1) tax reports and payments for governmental agencies
(2) employee paychecks
(3) a payroll check deposited in the payroll account at the bank
(4) payroll information for management.
Level 0 DFD (called Level
0 because there are zero
meaningful decimal
points—1.0, 2.0, etc.)
- Purpose: show all major
activity steps of a system
- Characteristics: process
are labeled 0
Process 2.0 (pay
employees) to create a Level 1 DFD (it has one meaningful decimal
place—2.1, 2.2, etc.)
DFD Creation Guidelines:
 Understand the system
 Ignore the certain aspects of the system
 Determines system boundaries
 Develop a context DSD
 Identify Data flows
 Group data flows
 Number each process
 Identify transformational processes
 Group transformational processes
 Identify all data stores
 Identify all sources and destinations
 Label all DFD Elements
 Subdivide DFD
FLOWCHARTS
flowchart - An analytical technique that uses a standard set of symbols to describe pictorially some aspect of an IS in a
clear, concise, and logical manner.
- record how business processes are performed and how documents flow through the organization.
- Use a pictorial presentation is easier to understand vs. a narrative
- FOUR categories::
1. Input/output symbols - input to or output from a system.
2. Processing symbols - data processing, either electronically
or by hand.
3. Storage symbols - where data is stored.
4. Flow and miscellaneous symbols - indicate the flow of
data, where flowcharts begin or end, where decisions are
made, and how to add explanatory notes to flowcharts.
Types of Flowcharts
document flowchart - Illustrates the flow of documents and data among areas of responsibility within an organization.
- trace a document from its cradle to its grave, showing where each document originates, its
distribution, its purpose, its disposition, and everything that happens as it flows through the system
System – Logical representation of system inputs, processes, and outputs
- Depicts the relationships among system input, processing, storage, and output.
Program - represents the logical sequence of program logic
- Illustrates the sequence of logical operations performed by a computer in executing a program
Internal control flowchart - special type of flowchart
- Used to describe, analyze, and evaluate internal controls, including identifying system
strengths, weaknesses, and inefficiencies
Guidelines for Preparing Flowcharts
1. Understand the system.
2.
3.
4.
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6.
7.
Identify the entities to be flowcharted.
Organize flowchart.
Clearly label all symbols
Page connectors
Draw a rough sketch of the flowchart.
Draw a rough sketch of the flowchart.
business process diagram
business process diagram – A visual way to describe the different steps or activities in a business process