Chapter 3: • Prepared by: Accounting department 3
SYSTEM
DOCUMENTATION
(Subject code: 201085)
❑ The importance of systems
Objectives of Chapter 3 documentation was emphasised
❑ Addressed the uses of systems
documentation
❑ Legislative requirements have
impacted on systems
documentation (internal controls)
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Objectives of
Chapter 3 (Cont)
Defined
process Worked Compared and
maps, data through the contrasted the
flow procedures for different forms
diagrams drawing up of
and differing types documentation
systems of
flowcharts documentation
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Contents
3.1 The Purpose & role of systems documentation
3.2 Process Redesign & Re-Engineering
3.3 Reading Document System
3.4 Document decribing the System
3.5 Introduce the software for SD
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The Purpose & Role of SD
❑ Systems documentation is a way
of visually depicting the
operations of a system
❑ A process map is a simple
graphical representation of a
business process
❑ Data flow diagrams are
graphical representations of the
data flows that occur within a
system
o Physical data flow diagram
o Logical data flow diagram
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The Purpose & Role of SD (Cont)
❑ The context diagram provides a
representation of the system and the entities
that provide inputs to, or receive outputs
from, the system of interest
❑ Systems flowcharts illustrate a system and
its inputs, processes and outputs in more
detail than a process map or data flow
diagram, providing information about the
documents and processes performed within
the system, as well as who is involved in the
system
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Process Redesign &
Re-Engineering and Systems
SYSTEMS DOCUMENTATION PRIOR TO UNDERTAKING
PROVIDES AN OVERVIEW OF THE ANY REDESIGN IT IS
SEQUENCE OF ACTIVITIES IN THE ESSENTIAL THAT THE
BUSINESS PROCESS CURRENT SYSTEM BE FULLY
UNDERSTOOD
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Process Redesign &
Re – Engineering and
Systems (Cont)
❑ The key piece of knowledge that an
accountant can offer the organisation in
situations of implementing new systems,
designing new systems or adopting
modifications to a system is the need for
well designed internal controls
❑ Systems documentation is important in
preserving the knowledge of a process’s
operations
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Auditing & Systems
Documentation
❑ Systems documentation plays a key role
in the audit of GPFRs
o ASA 200
o ASA 315 para 95
o ASA 315 para 18 (a) & (b)
❑ The auditor will be concerned with how
data is handled, the steps that are
followed, the internal controls built into
the process and the potential for
material errors to occur
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The Law & Systems
Documentation
❑ Auditors are facing legislative pressure
to use systems documentation
o Australian Auditing Standards have
legal backing
❑ Sarbanes Oxley Act has implications
for Australian companies listed on US
stock markets as well as Australian
subsidiaries of US companies
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Reading
Systems
Documentation
Reading Systems
Documentation (Cont)
❑ Entities: Any person, place or
thing involved in a process,
including people and computers
o External entity
o Internal entity
❑ A structured narration is a
written description of how a
process operates
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Structured
Narrative
Table
(Cont)
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Structured
Narrative
Table (Cont)
1.4 Definition & the evolution
Document describing the systemof
1 2 3
Process Data Elements
Map Flows of AIS
Diagram
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10-Jan-2024
Process Maps
❑ A process map is a simple
graphical representation
of a business process
201085 - System documentation 10-Jan-2024
Rules for Reading
Process Maps
1. The functional areas appear
down the left-hand side of the
diagram
2. The functional areas are
separated with a solid line
3. The subfunctions are separated
with a dashed line
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Rules for Reading TWO STANDARD SYMBOLS
Process Maps ARE USED: A RECTANGLE
(Cont) FOR A PROCESS AND A
DIAMOND FOR A DECISION
LINES THAT CONNECT
PROCESSES ARE
LABELLED WITH
DOCUMENTS
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Rules for Reading Process rectangles
Process Maps describe processes
(Cont) not documents
The process map
reads left to right
and top to bottom
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Process
Map
Data Flow
Diagrams
❑ There are three types of data
flow diagrams:
1. A context diagram
2. A physical data flow
diagram
3. A logical data flow diagram
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Data Flow Diagram Symbols
External entity
System of interest for a context diagram
Internal entity for a physical data flow diagram
Process for a logical data flow diagram
Data Store
Data Flow
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Context Diagram
❑ The context diagram
provides a representation of
the system and the entities
that provide inputs to, or
receive outputs from, the
system of interest
❑ It is an overview of the data
flow and says nothing about
what actually happens in the
process
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Sample Context Diagram
– Ordering Process
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Sample
Physical
Data Flow
Diagram –
Ordering
Process
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Sample
Logical Data
Flow
Diagram
Ordering
Process
Level 0 & Level 1
DFDs Level 0 data Level 1 data flow
flow diagram: diagram: the second
the highest level level logical data flow
logical data flow diagram that takes
diagram one of the process
providing an bubbles from the level
overarching 0 diagram and
view of the expands it to provide
processes that detail about the
occur activities that occur
within the process
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Systems
Flowcharts
❑ A systems flowchart represents
a combination of the logical and
physical data flow diagrams,
because it provides details of the
processes that are performed
(logical perspective) as well as
the physical resources that are
used to perform them (physical
perspective)
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Common Flowchart Symbols
Stop/start or Single
external entity document
Process Paper data store
Decision point Manual keying
Disc storage Manual process
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❑ Diagrams (context, physical data flow and logical
data flow) with the same external entities and
flows to and from these external entities are
Balancing a called balanced data flow diagrams
Data Flow
Diagram
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Drawing Systems
documentation
❑ Key Questions to
Consider:
o Who are the people and
things that perform
activities?
o What activities are being
performed by each
entity?
o What are the inputs and
outputs for each activity?
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Preparing a Process Map
1 2 3 4
Identify Draw the Indicate any Illustrate the
entities and lines for each subfunctions activities of
divisions division each entity
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Steps in Drawing a
Context Diagram
1. Identify the system of interest
oDraw a bubble and label it to
represent the system of interest
2. Identify the external entities
oDraw and label a rectangle for
each external entity
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3. Identify any data flows between the
Steps in external entities and the system of
Drawing a interest
Context
Diagram (Cont) 4. Draw in the data flows connecting the
external entities and system of interest
and label them accordingly
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Drawing a Physical
Data Flow Diagram
1. Identify the external entities
o Draw and label a rectangle for
each external entity
2. Identify the internal entities and
list them in the order they appear
in the system’s operation
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Drawing a Physical
Data Flow Diagram
(cont)
3. Draw in a bubble for each
internal entity and label the
entities accordingly
4. Identify any data flows between
external entities and internal
entities
o Draw in these flows and
label the data flow arrows
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Drawing a Physical Data Flow Diagram
(cont)
5. Identity the data flows between the internal entities
o Draw in the data flows between internal entities and label the
arrows with the physical document/ information that is being
sent or received.
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Drawing a Physical Data Flow Diagram
(cont)
6. Identify any data stores that are accessed to get data or to store
data as part of the process. These may be paper-based or
electronic
• Draw these data stores in and link them to the entity that
accesses them by including data flow arrows
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Drawing Logical Data
Flow Diagrams (cont)
1. Identify the external entities
2. Eliminate entities that just send or receive
items and any activities that are just send or
receive
3. Group remaining information processing
activities based on the underlying process
they perform
4. Number and label the underlying process
performed by the group of activities
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Drawing Logical Data
Flow Diagrams (cont)
5. Identify any data flows between external
entities and processes
6. Identify the data flows between the
processes
7. Identify any data stores that are
accessed to get data or to store data
8. Ensure your logical data flow diagram
balances with your physical data flow
diagram and context diagram
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Rules for Drawing a Flowchart
1. Avoid flows that cross over multiple
entities
2. Make sure that if a document enters
the system, you also show where it
ends up
3. Where a document is copied, number
the copies
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Rules for Drawing a
Flowchart (Cont)
4. Documents moving from entity to
entity should be shown in each
column
5. The filing of documents does not
require a manual process
6. Processes should have an input
and an output
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7. Only document normal processing
operations of the system
8. Where necessary use annotations to
Rules for clarify or explain ambiguities
Drawing a 9. Ensure that symbol labels add
Flowchart (Cont) meaning
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Comparing the Different
Documentation Techniques
❑ The process map gives an overall view of the
organisation’s process design and allows the
interactions among entities to be seen
❑ The systems flowchart also shows the entities
and the tasks they perform
❑ The process map and the systems flowchart
provide a very comprehensive picture of a
business process
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❑Data flow diagrams provide less detail
❑The context diagram can be expanded
into the physical & logical data flow
• Comparing the Different diagrams
• Documentation
Techniques (cont) ❑One form of documentation should not
be viewed as superior
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Review of Chapter 3
The importance of Addressed the Legislative requirements have
systems uses of systems impacted on systems
documentation documentation documentation (internal
was emphasised controls)
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Review of Chapter 3 (cont)
DEFINED PROCESS MAPS, WORKED THROUGH THE
DATA FLOW DIAGRAMS AND PROCEDURES FOR DRAWING
SYSTEMS FLOWCHARTS UP DIFFERING TYPES OF
DOCUMENTATION
COMPARED AND CONTRASTED THE DIFFERENT
FORMS OF DOCUMENTATION
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o Balanced DFDs
o Context diagram
o Data Flow Diagrams (DFDs)
o Entity (internal & external)
o Level 0 & 1 DFD
Key Terms
o Logical DFD
o Physical DFD
o Process map
o System of interest
o Systems flowchart
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MULTIPLE CHOICES QUESTIONS
1. A logical DFD shows:
a. the group of entities logically involved in a business process
b. The logical grouping of activities in a business process
c. the methods for performing activities in a process.
d. none of above
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MULTIPLE CHOICES QUESTIONS
2. Thực thể bên ngoài trong DFD là:
a. Có thể thực hiện xử lý thông tin
b. Chỉ cung cấp đầu vào cho hệ thống
c. Chỉ nhận thông tin đầu ra từ hệ thống
d. Không thể thực hiện các hoạt động xử lý dữ liệu
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MULTIPLE CHOICES QUESTIONS
3. A balance set of DFDs (logical, physical and context) i. must have same
external entities, ii. must have the same number of bubbles in the logical and
physical DFDs, iii. Cannot contain only one external entity, iv. Must have the
same number of flows to and from external entities, v. require that the number
of flows in the system is the same in the logical and physical DFDs.
a. i, ii
b. iii, iv
c. i, iv
d. ii, v
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MULTIPLE CHOICES QUESTIONS
4. Hệ thống tài liệu quan trọng trong tổ chức vì:
a. Hệ thống tài liệu giúp ghi nhận hoạt động trong doanh nghiệp, cho biết
hệ thống được thiết kế và hoạt động như thế nào. Hệ thống tài liệu được
ví như một bản đồ đường cho doanh nghiệp trong hoạt động của doanh
nghiệp, để lại dấu vết kiểm toán.
b. Hệ thống tài liệu cho biết dòng dữ liệu trong tổ chức luân chuyển như
thế nào.
c.Hệ thống tài liệu cho biết được quy trình kinh doanh, kiểm soát nội bộ
và dòng dữ liệu
d. Tất cả các đáp án trên
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MULTIPLE CHOICES QUESTIONS
5. System flowchart is:
a. illustrates the processes that take place within the system, the flow among these
processes interact with the external entities that provide inputs to, or receive outputs
from, the system of interest.
b. illustrates a system and its inputs, processes and outputs in more detail than a
process map or DFD, providing information about the documents and processes
performed within the system, as well as who is involved in the system
c. provides details of the entities involved in a process and the flows between those
entities as well as their interactions with external entities.
d. a simple graphical representation of business processes
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MULTIPLE CHOICES QUESTIONS
6. Phát biểu nào sau đây là không đúng
a. System flowcharts tập trung vào biểu diễn toàn bộ hệ thống hoặc quy trình trong
một môi trường cụ thể.
b. System flowcharts mô tả không chi tiết về hệ thống so với DFDs và process map
c. Process maps tập trung vào việc mô tả các bước cụ thể trong quy trình công việc,
thường bằng cách sử dụng các biểu tượng và ký hiệu đơn giản.
d. Data flow diagrams tập trung vào việc biểu diễn cách dữ liệu chuyển đổi và luân
chuyển trong hệ thống hoặc quy trình
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Thank You !