Chapter 2
Systems Techniques and
Documentation
Presentation Outline
How does
this
system
work?
I.
Systems Techniques
II. Flowcharting Techniques
III. System Technique Symbols
IV. The Use of Systems Techniques
I. Systems Techniques
Systems techniques are tools used in
analysis, design, and documentation
of system and subsystem
relationships.
A. Flowcharting
B. Logical Data Flow Diagrams (DFDs)
C. Charting Techniques
D. Narrative Techniques
E. Resource Utilization Analysis
F. Decision Analysis Techniques
A. Flowcharting
Read
Record
Decision
Process
1
Process
2
Output
A flowchart is a
symbolic diagram
that shows the data
flow and sequence
of operations in a
system.
B. Logical Data Flow Diagrams (DFDs)
A systems analyst often acts as the communication link
between users of a system and the programmers/systems
support staff who will physically design the system to
meet the user needs.
The intent of using DFDs is to separate clearly the
logical process of systems analysis from the
physical process of systems design. The
systems analyst provides a logical description to
the systems designer/programmer, who then
designs the physical specification..
C. Charting Techniques

HIPO charts
consist of two
segments.
Hierarchy chart
breaking down
processing tasks into
modules. See Figure
2-6 on page 38.
 IPO (Input-ProcessOutput) chart
describing the inputprocess-output
requirements of each
module. See Figure
2-5 on page 38.
D. Narrative Techniques
Narrative techniques are
often particularly
useful in the fact
finding stage of
systems analysis.
Various techniques
include:
1. In depth and
structured interviews
2. Open-ended and
closed-ended
questionnaires
3. Document reviews
E. Resource Utilization Analysis

Work measurement
involves techniques
used to identify tasks,
obtain and adjust time
estimates for the tasks,
and analyze
requirements in terms of
total task time and
capacity utilization
 Work distribution
analysis involves
assignment of tasks to
employees. See Table 22 on page 50.
F. Decision Analysis Techniques
A decision symbol in a
flowchart can only
show two flow
condition. More
complex decision
functions may be
represented using
one of the following:
1. Branching tables
2. Decision tables
1. Branching Tables
A branching table consists of a single condition
that can result in more than two paths of
processing.
Code
Equal to Freshman Sophomore Junior Senior
Go to
A
B
Orientation
Exit
Evaluation
The “Go to” section contains either a connector symbol
reference or a single flowline to another symbol.
2. Decision Tables
A decision table is similar to a branching table but
more complex in that it incorporates multiple
decision criteria.
Illustration
An analyst wishes to prepare a decision table for
purchase order procedures. First, there is a credit
check of the customer. If credit is approved, the
order is accepted. If the order calls for 0 to 25 units,
there is no discount on the order. If the order calls
for 26 to 55 units, it is eligible for a 5 percent
discount; if more than 55 units are ordered, the
discount is 10 percent.
An Example of a Limited-Entry Decision Table
Condition entries are limited to Y, N, or N/A (-).
Processing actions are either present or absent.
Credit
approved
0 - 25 units
26 - 55 units
Over 55 units
Reject order
Accept order
No discount
5% discount
10% discount
N
-
Y
Y
-
Y
Y
-
Y
Y
X
X
X
X
X
X
X
An Example of an Extended-Entry Decision Table
Entries indicate specific conditions, specific actions
to be taken, or reference to other decision tables.
Credit
approval
N
Y
Y
Y
Units in order
-
0 – 25
26 – 55
Over 55
Order
Acceptance
N
Y
Y
Y
0%
5%
10%
Discount
given
II. Flowcharting Techniques
A. Systems Flowchart
B. Analytic Flowcharts
C. Document Flowcharts
D. Forms Distribution Chart
E. Program or Block Flowcharts
Cash
Payments
A. Systems Flowcharts
Remittance
Advices
Prepare
Batch
Control
Total
Cash
Payments
Remittance
Advices
Batch
Control
Total
A systems flowchart is a graphical representation
of the overall flow of work, documents, and
operations in an application system. The
sandwich rule states that every process should
be “sandwiched” between an input symbol and
and output symbol.
B. Analytic Flowcharts
Analytic flowcharts identify
all significant
processing in an
application,
emphasizing processing
tasks that apply
controls. In other
words, functional areas
are separated by
columns. See Figure 210 on page 42.
B. Document Flowcharts
Identifies the point of
origin, distribution,
and ultimate
disposition of each
document used in
an application
system. See Figure
2-11 on page 43.
C. Forms Distribution Chart
Illustrates the distribution of a single multiple
copy form within an organization. Emphasis is
on form recipient rather than processing. (The
following illustrates the Purchase Order in
Figure 2-11 on page 43)
Purchasing
Stores
Receiving
1
Vendor
Acc. Payable
1
2
3
4
5
6
3
4
5
E. Program or Block Flowcharts
Program flowcharts are used by system developers
to provide detail about individual processing
functions. The clutter of the additional processing
detail is thus removed from a flowchart showing
overall processing.
Payroll Processing
Hours
Worked
Payroll
Payroll
Register
Compute
Gross Pay
Compute
Withholdings
Payroll
Checks
Printing
III. System Technique Symbols
A. Basic Flowcharting Symbols
B. Other Symbols
A. Basic Flowcharting Symbols
Basic Input/Output Symbol – Making
data available for processing or the
recording of processed information.
Process – Transforming data into
information or other data.
Flowline Symbol – Used to show the
sequence of information and
processing.
-----
Annotation – Used to show
descriptive comments.
B. Other Symbols
Specialized Input/Output Symbols –
See Figure 2-2 on page 35.
 Data Flow Diagram Symbols – See
Symbols in Table 2-1 on page 39. See
Illustrations in Figures 2-7 through 2-9
on pages 40-41.

IV. The Use of Systems
Techniques
A. Auditing
B. Systems Development
A. Auditing
Two basic components of an external
audit of financial statements include:


Compliance testing is used to determine the
extent to which established control procedures
are actually being carried out.
Substantive testing to verify amounts shown on
financial statements. The level of substantive
testing will depend on the extent to which the
auditor depends on an entity’s system of internal
control.
B. Systems Development
Systems development generally consists of the
following three phases:
Systems Analysis – Logical data flow diagrams
and analytic flowcharts help in providing an
overall picture of the how the organization
functions.
 Systems Design – A blueprint of how the
proposed system will function.
 Systems Implementation – Taking steps to put
system into operation by doing things like
training personnel, and acquiring equipment and
software.

Summary
I.
II.
Five Types of Systems Techniques
Five Types of Flowcharting
Techniques
III. Basic Flowcharting Symbols
IV. Uses of Systems Techniques