1

Chapter Three
Documentation Techniques
and System Development
 Documentation Tools and
Techniques
2

 Documentation includes the narratives,

flowcharts, diagrams, and other written
material that explain how the system works.
 This information covers the who, what,

when, where, why, and how data entry,

processing, storage, information output and
system controls.
 The two most common tools of system
documentation:
 Dataflow diagrams and Flowcharts
 How do accountants use documentation?
 At a minimum, they have to read documentation

to understand how a system works.

 They may need to evaluate the strengths and

weaknesses of an entity’s internal controls.

 They may examine documentation to determine if

a planned system meets the needs of its users.

 They may prepare documentation to:
 Demonstrate how a proposed system would work
 Demonstrate their understanding of a system of
internal controls
 Cont’d……….
4

Why documentation is important?

 Depicting how the system works: Studying
and reviewing written descriptions of the
inputs, processing steps, and outputs of the
system make the job easier.
 Training users: it includes the user guides,
manuals and other operating instructions that
help people learn how the AIS operates.
 Designing new systems: it helps system
designers develop new systems.
 Auditing AISs: it helps auditors determine the
 Cont’d……….
5

 Controlling system development and

maintenance costs: it helps system
designers develop object-oriented SW.
 Normalizing communications with
others: it’s techniques are standard
industry tools, and they are more likely to be
interpreted the same way by all parties
viewing them.
 Documenting business processes: it helps
managers better understand the ways in
which their businesses operate.
 Cont’d……….
6

The basic documentation tools are:

 Data flow diagram - a graphical description

of the source and destination of data that

shows data flow within an organization, the
processes performed on the data and how
data are stored.
 A data flow diagram (DFD) graphically

describes the flow of data within an

organization. It is used to:
 Document existing systems
 Plan and design new systems
 Data Flow Diagrams
7

General guidelines for developing DFDs:

 Understand the system - observing the flow

of information through an organization and

interviewing the individuals who use and
process the data.
 Ignore certain aspects of the system - as

DFD diagrams the origin, flow, transformation,

storage and destinations of data, all control
actions and processes should be ignored.
 Determine system boundaries - determine

what to include in and exclude form the

 Cont’d……..
8

 Develop a context diagram - a context

diagram is a good way of depicting system
boundaries.
 Identify data flows - all data flows shall be
identified entering or leaving the system's
boundary, including where the data
originate and the final destination.
 Cont’d………..
9
 Group data flows - data elements that always flow
together should be grouped together and shown as
one data flow until they are separated.
 If the data elements do not always flow together,

they should be shown as two separate data flows.

 Identify transformation processes - placing a circle
wherever work is required to transform one data flow
into another.
 Group transformation processes - transformation
processes that are logically related or occur at the
same time and place should be grouped together.
 Unrelated items shall never be combined into a single transformation
process.
 Cont’d………
10

 Identify all files or data stores - Each

data repository and data flow into and out
of it, should be identified.
 Identify all data sources and
destinations - all sources and
destinations of data should be identified
and included on the DFD.
 Name all DFD elements - data elements
should be given unique and descriptive
names representing what is known about
them.
 Subdivide the DFD - If there are more
 Cont’d……….
11

 Give each process a sequential

number - in completed DFD, each
process is given a sequential number
(lower to higher) that helps students
move back and forth between different
DFD levels.
 Repeat the process - developers must
work through organization data flows
several times.
 The DFD shall be organized to flow from

top to bottom and from left to right.


 Cont’d………..
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Elements in a Data Flow Diagram

 DFD is composed of four basic elements:

 Data sources and destinations,

 Data flows,
 Transformation processes, and
 Data stores

 Each element represents in a DFD by a

unique symbol
DATA FLOW DIAGRAMS
 Data sources and destinations
 Appear as squares
 Represent organizations or individuals that send
or receive data used or produced by the system
 An item can be both a source and a
destination
 DATA FLOW DIAGRAMS
• Data sources and
destinations are marked
in red. Accounts
• Can you tell which are Receivable
sources and which are
destinations?

Customer Remittance Receivables

payment 1.0 data 2.0
Customer Information Credit
Process Update
Payment A/R Manager

Deposit

Bank
DATA FLOW DIAGRAMS
 Data flows
 Appear as arrows
 Represent the flow of data between sources and
destinations, processes, and data stores
 DATA FLOW DIAGRAMS
• Data flows are shown in
red.
Accounts
Receivable

Customer Remittance Receivables

payment 1.0 data 2.0 Information
Customer Process Update Credit
Payment A/R Manager

Deposit

Bank
DATA FLOW DIAGRAMS
 As you probably surmised from the
previous slides, if a data flow is two-way,
use a bi-directional arrow.

Update
Genera
Receiv-
l
ables
Ledger
DATA FLOW DIAGRAMS
 If two data elements flow together, then
the use of one data flow line is
appropriate.

Cash Rec’d & Remittance Slip Process

Customer
Payment
DATA FLOW DIAGRAMS
 If the data elements do not always flow
together, then multiple lines will be
needed.

Customer Inquiry Process

Customer Payment
Customer Payment
DATA FLOW DIAGRAMS
 Processes
 Appear as circles
 Represent the transformation of data
 DATA FLOW DIAGRAMS
• The transformation processes
are shown in red.
• Every process must have at
Accounts
least one data inflow and at
Receivable
least one data outflow.

Customer Remittance Receivables

payment 1.0 data 2.0 Information Credit
Customer Process Update
Payment A/R Manager

Deposit

Bank
DATA FLOW DIAGRAMS
 Data stores
 Appear as two horizontal lines
 Represent a temporary or permanent repository
of data
 DATA FLOW DIAGRAMS
• The data store is shown in
red.
Accounts
Receivable

Customer 1.0 Remittance 2.0 Receivables

Customer payment Process data Update Information Credit
Payment A/R Manager

Deposit

Bank
 DATA FLOW DIAGRAMS
 Data dictionary:
 The data dictionary contains a

description of all data elements, data

stores, and data flows in a system.
 Data flows and data stores are usually

collections of data elements.

 EXAMPLE: A data flow labeled student

information might contain elements

such as student name, date of birth, ID
number, address, phone number, and
major.
 Cont’d………..
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Subdividing the DFD

 DFD are subdivided into successively

 Lower levels DFD ; to provide ever-

increasing amounts of detail.
 Users have differing needs, so a variety of

levels can better satisfy these requirements.

 The highest-level DFD is a context
diagram.
 It provides the reader with a summary level

view of the system.

 It depicts a data processing system and the

external entities that are the sources and

 DATA FLOW DIAGRAMS
nt Govt.
Depart- e Agencies
ym
ments Tim pa
ec &
ard o rt
p
s re x
Ta
Payroll Employee checksEmployees
Processing
f orm System Pa
yro
y ee rm ll ch
l o f o eck
m p g e P
w
e h an ay
e e c ro Bank
Human N y e l lr
l o ep
ResourcesEmp or
t
• This is the context diagram for
Manage-
the S&S payroll processing
ment
system.
 DATA FLOW DIAGRAMS
Depart-
ments Employees
Employee
New employee Time paychecks
Human form cards
Resources
1.0
Update 2.0
Employee Payroll
Empl. Pay
change check
Payroll Employ- Bank
form
File ees

Payroll
disburse-
3.0 ment data 5.0
This diagram Prepare Employee/ Update
Reports Payroll File Gen.
shows the Ledger
next level of Payroll tax
disb. voucher
detail for the Payroll
report
context 4.0 General
Ledger
diagram. Pay
Tax report
Manage- Taxes
& payment
ment Govt.
Agencies
 Flowcharts
28
 It is an analytical technique used to describe
some aspect of IS in a clear, brief, and logical
method.
 It uses a standard set of symbols to
pictorially describe transaction processing
procedures
 Document flow chart - …… flow of
documents and information between
departments within a company.
 System flowchart - …… the relationship
among the input, processing, and output in
an information system.
 Flowchart Symbols
29

 Flowchart symbols can be divided into

four categories:
 Input/output - indicate the type of device or media that
provides input to or records output from a process.
 Processing - show the type of device used to process data.
 Storage - represent the device used to store data
 Flow and miscellaneous - indicate the flow of data and
goods.
 Cont’d……….
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Docume Manual
nt operations
Online Computer
keying processing
Displa Auxiliary
y operation
Document/processing
Input/ flow
On-page connector
output;
Off-page
journal/ledg connector
Magnetic
er Terminal
disk
Magnetic Decisio
tape n
 Document Flowcharts
47

 The flow of documents and information

among departments within an organization.
 It also analyzes the adequacy of control
procedures in a system, such as internal
checks & segregation of duties.
 Flowcharts that describe & evaluate
internal controls are often referred to as
internal control flowcharts.
 They can expose weaknesses or
inefficiencies such as:
 Inadequate communication flows
 Unnecessarily complex document flows
This is part of the
document flowchart
from
 System Flowcharts
49

 It depict the relationship among the

input, processing, and output of AIS.
 It begins by identifying both the inputs

that enter the system and their origins.

 It follows by the processing portion of

the flowchart
 The new information is the output

component.
 System flowcharts are an important
systems analysis, design, and evaluation
tool.
 System Flowchart
3-
50

Copyright © 2012 Pearson Education, Inc. publishing as

Prentice Hall
 Program Flowcharts
51

 It describes the…….
 Sequence of logical operations
performed by a computer in executing a
program.
 Specific logic to perform a process

shown on a systems flowchart.

 A flow line connects the symbols and
indicates the sequence of operations.
• The program flowchart from
Figure 3-11 in your textbook is
shown on the right.
 DFDs VS Flowcharts
53

 DFDs emphasize on the flow of data and what

is happening in a system, whereas a
flowchart emphasizes the flow of documents
or records containing data.
 DFD represents the logical flow of data,
whereas a flowchart represents the physical
flow of data.
 Flowcharts are used primarily to document
existing systems, whereas DFDs are primarily
used in the design of new systems.
 DFDs make use of only four symbols, whereas
 Systems Development Process
54

 Companies change their old systems:

 To answer to changes in user or business

needs
 To take advantage of technology changes
 To improve their business process
 To gain a competitive advantage and/or

lower costs
 To increase productivity
 To accommodate growth
 To accommodate distribute decision making
 To replace a system that is aged and
55

System development is the process of creating or altering systems,

along with the processes, practices, models, and methodologies
used to develop them.
 Systems Development Life Cycle
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 It is a conceptual model that describes the

stages in IS development project, from an
initial feasibility study through maintenance
of the completed application.
 It is a logical process by which systems
analysts, software engineers, programmers
and end-users build IS and computer
applications to solve business problems and
needs.
 Cont’d……….
57

SDLC follows the following steps:

 The existing system is evaluated -
deficiencies are identified.
 The new system requirements are
defined - the deficiencies in the existing
system must be addressed with specific
proposals for improvement.
 The proposed system is designed - plans

are laid out concerning the physical

construction, hardware, operating systems,
programming, communications, and security
 Cont’d……….
58

 The new system is developed - the new

components and programs must be
obtained and installed.
 Users must be trained, and it must be

tested.
 If necessary, adjustments must be made

at this stage.
 The system is put into use - the new
system can phased in and the old system
gradually replaced.
 Maintenance must be kept up carefully at
all times.
 Cont’d……...
59

 Romney and Steinhart identified the

following five components of SDLC.
 Systems analysis/Analysis
 Conceptual design/Design
 Physical design/Operation
 Implementation and
conversion/Implementation
 Operations and maintenance/Operation
 Cont’d……….
60
 1. Systems analysis
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 The information needed to purchase or

develop a new system is gathered.
 System analysis is the stage of:
 Studying the current business system

 Understanding how the existing system

works
 Determining the weakness and strength

of the existing system

 Defining the business needs and
requirements
 Cont’d
62

There are five steps in the analysis

phase:
 Initial investigation
 System survey

 Feasibility study

 Information needs and system

requirement
 System analysis report
 Cont’d……….
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I. Initial investigation
 Is conducted to screen projects; and the following are essential to
investigate;
 Gaining a clear picture of the problem or need
 Determining the project's viability and expected costs.
 Evaluating the project's scope and the nature of the new AIS, a
 Recommending whether the project should be initiated as
planned, and modified
 Cont’d………
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II. Systems survey

 An extensive study of the current AIS is undertaken.
 It may take weeks or months depending on the complexity and
the scope of the system.
 The objectives of a system survey include:
 Gain a thorough understanding of the company operations,
policies, and procedures.
 Data and information flows.
 AIS strengths and weaknesses; and available hardware,
software, and personnel.
 Develop working relationships with users and build
 Collect data that identify user needs and make
 Cont’d……….
65

III. Feasibility study

 A more careful feasibility analysis is conducted to determine the project's
viability.
 Especially, economic feasibility is important.
 The feasibility analysis is updated as the project proceeds and costs and
benefits become clearer.

IV. Information needs and systems requirements

 The company identifies the information needs of the AIS users and
documents system requirements.
 Ask users what they need; Analyze existing system and Create a
 Cont’d……….
66

V. Systems analysis report

 Used to summarize and document the analysis activities and serve as a
repository of data from which system designers can draw.
 2. Conceptual design
67

 A general framework is developed for implementing user requirements and

solving problems identified in the analysis phase.
 The three steps in conceptual design

I. Evaluate design alternatives

 The design team should identify and evaluate design alternatives using the
following criteria:
 How well it meets organizational & system objectives
 How well it meets users’ needs
 Whether it is economically feasible

 Its advantages and disadvantages

 Cont’d……..
68

II. Prepare design specifications

 The team develops the conceptual design specifications for the following
elements:
 Input, Data storage, Processing procedures and operations, and
Outputs.

III. Prepare conceptual systems design report

 Conceptual systems design report is developed & submitted.
 To guide physical systems design activities
 To communicate how management and user information needs will be
met
 3. Physical design
69

 It translates the large, user-oriented AIS requirements of a conceptual

design into detailed specifications that are used to code and test the
computer program.
 At the end of physical design phase the team prepares a physical
systems design report.
 The report becomes the basis for management’s decision whether
to proceed to the implementation phase.
 4. Implementation and conversion
70

 Systems implementation is the process of installing hardware and software

and getting the AIS up and running.
 An implementation plan consists of implementation tasks, expected
completion dates, cost estimates, and the person or persons responsible for
each task.
 Planning should include adjustments to the company’s organizational
structure.
 5. Operations and maintenance
71

 The final step in the SDLC is to operate and maintain the new system
 A post-implementation review should be conducted on a newly installed
system.
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Thank you!

The End!