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
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?
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.
Prepare and utilize data flow diagrams to understand, evaluate, and design
(3) Prepare and utilize flowcharts to understand, evaluate, and design