Systems Documentation Techniques Part 2 (29-54)

29) A well-planned and drawn level 0 data flow diagram for the expenditure cycle would show which of the following processes? A) 1.0 Order Goods; 2.0 Receive and Store Goods; 3.0 Pay for Goods. B) 1.0 Order Goods; 1.1 Receive and Store Goods; 1.2 Pay for Goods. C) 0.1 Order Goods; 0.2 Receive and Store Goods; 0.3 Pay for Goods. D) 0.1 Order Goods; 0.12 Receive and Store Goods; 0.13 Pay for Goods. Answer: A 30) A well-planned and drawn level 0 data flow diagram for the payroll cycle would show which of the following processes? A) 0.1 Update employee/payroll file; 0.2 Pay employee; 0.3 Prepare Reports; 0.4 Pay taxes; 0.5 Update general ledger. B) 0.1 Update employee/payroll file; 0.12 Pay employee; 0.13 Prepare Reports; 0.14 Pay taxes; 0.15 Update general ledger. C) 1.0 Update employee/payroll file; 1.2 Pay employee; 1.3 Prepare Reports; 1.4 Pay taxes; 1.5 Update general ledger. D) 1.0 Update employee/payroll file; 2.0 Pay employee; 3.0 Prepare Reports; 4.0 Pay taxes; 5.0 Update general ledger. Answer: D 31) Data flow diagrams depict A) processes, but not who is performing the processes. B) processes, but not the data that flows between processes. C) who is performing processes, but not how they perform the process. D) who is performing processes, but not the data that flows between processes. Answer: A 32) Which is the correct label for the blank transformation process circle in the data flow diagram below? A) 1.2 Check Credit B) 1.2 Enter Order in Sales Journal C) 1.2 Does Customer Have Credit? D) 1.2 Salesperson Approves Answer: A 33) In the data flow diagram below, inventory is a A) data store. B) data source. C) data flow. D) data source and destination. Answer: A 34) Discuss the ways in which information professionals interact with documentation tools and the various levels of understanding necessary. Answer: At a minimum, a professional should be able to read documentation. A professional may also be called upon to evaluate internal control system documentation in order to identify control strengths and weaknesses or recommend improvements. A professional may be engaged to prepare documentation, which requires the greatest amount of skill and understanding of a particular system. 35) Explain two reasons why it is important to have a working knowledge of DFDs and flowcharting. Answer: First, SOX requires auditors to evaluate internal control systems. Data flow diagrams and flowcharts are the two most frequently used development and documentation tools used in practice. Second, since systems development is extremely complex, DFDs and flowcharts are tools that are used to create order from chaos and complexity. Third, documentation tools and concepts are covered on the CPA exam. 36) What does the Sarbanes-Oxley Act require that is relevant to documentation tools?Answer: The Sarbanes-Oxley Act requires that independent auditors understand the automated and manual procedures an entity uses. One of the best ways to gain this understanding is to use the flowcharts to document the internal control system, as weaknesses and strengths are more easily spotted from such graphic portrayals. 37) Describe a situation in which data flow should be shown with two data flow lines instead of one. Answer: A data flow may consist of one or more pieces of datum. The determining factor is whether the data elements always flow together at the same time. For example, "customer payment" has both payment and remittance data. Since these elements always flow together, only one data flow line is required. However, data flows between the customer and the payment processes have customer inquiries and cash receipts; these data items do not always flow together at the same time. In such a case, two data flow lines will be shown. 38) Describe the different levels of DFDs. Answer: The highest-level or summary view DFD, which shows major inputs/outputs and a single process is called a context diagram. The DFD itself shows inputs, major processes, and outputs; each process in the DFD can be "exploded" or shown in greater level of detail with the sub-processes and related data flows. 39) How is a DFD different from a flowchart? Answer: The purpose of a DFD is to diagram the origins, flow, transformation, storage, and destination of data. The purpose a flowchart is to present a graphical description of the flow of documents, relationships among input, processing, and output, or the sequence of logical operations in an information system or program. A DFD is limited to basic symbols and lines, and focuses on the flow and use of data. A flowchart will generally be more complex, and more focused on the managerial, AIS, or IS aspects of the organization. 40) Explain the relevance of the Sarbanes Oxley Act to the documentation tools presented in this chapter. Answer: The Sarbanes Oxley Act of 2002 requires executives of public companies to document and evaluate internal controls. External auditors must evaluate management's assessment of internal control and attest to its accuracy. Therefore, company executives and the auditors must document and test the internal controls — documentation tools, such as flowcharts, are used to do this. 41) Discuss the idea of a data flow. Answer: A data flow is a graphic representation of the flow of data between processes, data stores, and data sources and destinations. A data flow is really a form of communication. When the analyst draws a curved or straight line with an arrow at one end, what is represented is a form of communication among the other elements of the data flow process. Consider for example a data source being depicted by a box. The box represents a data source. Data then is sent from the source to a circle, which represents a transformation process. The source of data sends the flow to the transformation process, which will process the data and somehow use the data or turn it into useful information. Note that data flows can represent one or more pieces of datum. Because data flows may have more than one data element, the analyst must determine whether to show one or more lines. Good DFDs and data flow lines in such diagrams eliminate the need for users and analysts to "infer" what type of information is flowing. 42) What is the value of using a context diagram when working with DFDs? Answer: In order to create a useful DFD, the analyst must determine system boundaries—what is to be included or excluded from the system. A context diagram will help to achieve this goal, since it is a good way to depict the boundaries of the system. The analyst first creates a context diagram by placing a circle in the middle of the diagram. The circle represents the system under consideration. On either side of the circle, boxes are created which represent outside entities the system interacts with directly. Data flow lines are drawn to show the direction of the flow of data. After this pictorial representation has been completed, the analyst can then better assess the boundaries of the system and amount of interaction between the system and outside entities. 43) Identify five important guidelines for drawing a DFD. Select one from your list and describe why it could be the most important one to consider when preparing a DFD. Support your choice with an example. Answer: Understand the system. Ignore certain aspects of the system (such as control processes and control actions). Determine system boundaries. Develop a context diagram. Identify data flows. Group data flows. Identify transformation processes. Group transformation processes. Identify all files or data stores. Identify all data sources and destinations. All DFD elements are named. Subdivide the DFD. Give each process a sequential number. Repeat the process. Prepare a final copy. (Student answers will vary depending on the items chosen and the quality of their argument. The text provides various items that could be used to answer this question.) Concept: 44) Following is a context diagram for a current Payroll Processing System. a) Identify the data sources and destinations, data flows, and transformation process marked by question marks. b) What would you need to do to explode this diagram? Answer: 1 - Human resources, 2 - Time cards, 3 - Payroll processing system, 4 - Employee paychecks or pay-stubs, 5- Payroll report, 6 - Government agencies, 7- Banks. To explode this diagram, additional information is needed to identify detailed procedures within the payroll processing activity as well as additional inputs and outputs. It would be useful to obtain a comprehensive narrative of the payroll processing procedures for review and identification of these items. If there is no narrative available, interviews are another source of information. 45) The Sarbanes-Oxley Act requires auditors to create flowcharts to document business processes. Answer: FALSE 46) In the data flow diagram below, Shipping is a A) data store. B) data flow. C) data source. D) data destination. Answer: D 47) In the data flow diagram below, which process happens first? A) Respond to customer inquiries B) Take order C) Check inventory availability D) Approve order Answer: B 48) In the data flow diagram below, a customer order must be approved before the company checks to make sure the inventory is available. Answer: TRUE 49) In a data flow diagram of the vendor payment process, what symbol would most appropriately reflect an update of the payables account? A) a square B) a circle C) two horizontal lines D) none of the above Answer: B 50) In a data flow diagram of the vendor payment process, "Vendor" will appear above or in A) a square. B) a circle. C) two horizontal lines. D) none of the above Answer: A 51) In a data flow diagram, a triangle represents A) an internal control. B) document filing. C) on page connection. D) document processing. Answer: A 52) In a data flow diagram that depicts a company's internal controls, where is each internal control typically explained in detail? A) in an annotation on the same page as the internal control B) inside the symbol used to represent the internal control C) on a table that accompanies the internal control data flow diagram D) Internal controls are not typically explained in detail in an internal control data flow diagram. Answer: C 53) Which documentation technique would not depict the type of storage medium used (such as a flash drive or a hard drive) to physically store data? A) system flowchart B) data flow diagram C) business process diagram D) internal control flowchart Answer: B 54) In a data flow diagram of the order shipping process, what symbol would most appropriately denote a "Bill of Lading" (a form of shipping document) used in the process? A) a square B) a circle C) two horizontal lines D) an arrow Answer: D