Process Flowchart Accounting Information Sytstem Process Flowchart Essay

Description

create/explain: (1) A description of the process, (2) A process flowchart, and (3) suggestions for new internal controls that should be implemented.The Joseph Brant Manufacturing Company makes athletic footwear. Processing of production orders is as follows: At the end of each week, the production planning department prepares a master production schedule (MPS) that lists which shoe styles and quantities are to be produced during the next week. A production order preparation program accesses the MPS and the operations list (stored in a permanent disk file) to prepare a production order for each shoe style to be manufactured. Each new production order is added to the open production order master file stored on disk.Each day, parts department clerks review the open production orers and the MPS to determine which materials need to be released to production. All materials are bar-coded. Factory workers work individually at specially designed U-shaped work areas equipped with several machines to assist them in completely making a pair of shoes. Factory workers scan the barcodes as they use materials. To operate a machine, the factory workers swipe their ID badge through a reader. This results in the system automatically collecting data identifying who produced each pair of shoes and how much time it took to make them. Once a pair of shoes is finished, it is placed in a box. The last machine in each work cell prints a bar-code label that the worker affixes to the box. The completed shoes are then sent to the warehouse.

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Accounting Information Systems
Fifteenth Edition
Chapter 3
Systems Documentation
Techniques
Copyright © 2021, 2018, 2015 Pearson Education, Inc. All Rights Reserved
Learning Objectives
3.2 Prepare and use flowcharts to understand, evaluate, and
document information systems.
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Why Document Systems?
• Accountants must be able to read documentation and
understand how a system works (e.g., auditors need to
assess risk)
• Sarbanes-Oxley Act (SOX) requires management to
assess internal controls and auditors to evaluate the
assessment
• Used for systems development and changes
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Flowcharts
Describe an information system showing:
• Inputs and outputs
• Information activities (processing data)
• Data storage
• Data flows
• Decision steps
Key strengths of flowcharts are that they can easily capture
control via decision points, show manual v s automated
processes.
ersu
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Figure 3.3 Common Flowcharts
Symbols (1 of 3)
Input/Output Symbols
Symbol
Name
Explanation
Document
An electronic or paper document or report
Multiple copies of one
paper document
Illustrated by overlapping the document symbol and
printing the document number on the face of the
document in the upper right corner
Electronic output
Information displayed by an electronic output
device such as a terminal, monitor, or screen
Electronic data entry
Electronic data entry device such as a computer,
terminal, tablet, or phone
Electronic input and
output device
The electronic data entry and output symbols are
used together to show a device used for both
An icon of a document
An icon of multiple copies of a document
A badge shaped icon
A quadrilateral.
A badge shaped icon is connected to a quadrilateral.
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Figure 3.3 Common Flowcharts
Symbols (2 of 3)
Processing Symbols
Symbol
Name
Explanation
Computer processing
A computer-performed processing function; usually results in a
change in data or information
Manual operation
A processing operation performed manually
A rectangle
A trapezium
Storage Symbols
Symbol
Name
Explanation
Database
Data stored electronically in o database
Magnetic tape
Data stored on a magnetic tape; tapes are popular back-up
storage mediums
Paper document file
File of paper documents; letters indicate file-ordering sequence:
N = numerically, A = alphabetically, D = by date
Journal/ledger
Paper-based accounting journals and ledgers
A right circular cylinder
A chat icon
An inverted triangle with a letter N.
A parallelogram.
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Figure 3.3 Common Flowcharts
Symbols (3 of 3)
Flow and Miscellaneous Symbols
Symbol
A right arrow.
Name
Explanation
Document or
processing flow
Direction of processing or document flow; normal flow is down and
to the right
Communication link
Transmission of data from one geographic location to another via
communication lines
On-page connector
Connects the processing flow on the same page; its usage avoids
lines crisscrossing a page
Off-page connector
An entry from, or an exit to, another page
Terminal
A beginning, end, or point of interruption in a process; also used to
indicate an external party
Decision
A decision-making step
Annotation
Addition of descriptive comments or explanatory notes as
clarification
A zig zag right arrow
A circle
An inverted pentagon.
An oval
A rhombus
A link icon branches into two.
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Types of Flowcharts
• Document: shows the flow of documents and data for a
process, useful in evaluating internal controls
• System: depicts the data processing cycle for a process
• Program: illustrates the sequence of logic in the system
process
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Guidelines for Drawing Flowcharts
• Understand the system you are trying to represent.
• Identify business processes, documents, data flows, and
data processing procedures.
• Organize the flowchart so that it reads from top to bottom
and left to right.
• Clearly label all symbols.
• Use page connectors (if it cannot fit on a single page).
• Edit/review/refine to make it easy to read and understand.
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