Notes-Ch3 - Chapter 3 Documenting Accounting Information...

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1 Chapter 3 Documenting Accounting Information Systems 1. What is a documentation of an AIS? It explains how AISs operate and is therefore a vital part of any accounting system. IT describes the tasks for recording accounting data, the procedures that users must perform to operate computer applications, the processing steps that computer systems follow, and the logical and physical flows of accounting data through the system. tools used in the analysis, design, and documentation of systems Narratives, flowcharts, diagrams, and other written materials that explain how a system works. Covers the who, what, when, where, why, and how of data entry, processing, storage, output and system controls. Why we have to understand system techniques? a. As an accountant, you must be able to read documentation so that you can determine how the system works. b. Statement on Auditing Standards (SAS) No. 55 requires that independent auditors understand a client’s system of internal controls before conducting an audit. 2. Why documentation is important? a. Depicting how the system works. Studying and reviewing written descriptions of the inpits, processing steps, and outputs of the system make the job easier. b. Training users Documentation also includes the user guides, procedure manuals, and other operating instructions that help people learn how the AIS operates. c. Designing new systems Documentation helps system designers develop new systems in much the same way that blueprints help architects design buildings. < Learning Objectives> After studying this chapter, the student should be able to: (1) Understand why documenting an AIS is important. (2) Prepare and utilize data flow diagrams to understand, evaluate, and design information systems. (3) Prepare and utilize flowcharts to understand, evaluate, and design information systems.
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2 d. Controlling system development and maintenance costs Good documentation helps system designers develop object-oriented SW, that is, programs that contain modular, reusable code. This object-orientation helps programmers avoid writing duplicate programs and facilities changes when programs must be modified later. e. Standardizing communications with others Documentation techniques such as flowcharts and data flow diagrams are standard industry tools, and they are more likely to be interpreted the same way by all parties viewing them.
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This note was uploaded on 06/01/2011 for the course ACCOUTING act4609 taught by Professor Jason during the Spring '11 term at Assumption College.

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Notes-Ch3 - Chapter 3 Documenting Accounting Information...

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