Chapter 6:

Systems Documentati

Prepared by
Kent Wilson
University of South Australia

The Purpose & Role of

Systems Documentation
Systems documentation is a way of visually
depicting the operations of a system
A process map is a simple graphical
representation of a business process
Data flow diagrams are graphical
representations of the data flows that occur
within a system
o Physical data flow diagram
o Logical data flow diagram

The Purpose & Role of

Systems Documentation (Cont)
The context diagram provides a
representation of the system and the entities
that provide inputs to, or receive outputs from,
the system of interest
Systems flowcharts illustrate a system and
its inputs, processes and outputs in more detail
than a process map or data flow diagram,
providing information about the documents
and processes performed within the system, as
well as who is involved in the system

Process Redesign & Re-Engineering

and Systems Documentation

Systems documentation provides an

overview of the sequence of
activities in the business process
Prior to undertaking any redesign it
is essential that the current system
be fully understood

Organisational Memory
and Change
The key piece of knowledge that an
accountant can offer the organisation in
situations of implementing new systems,
designing new systems or adopting
modifications to a system is the need for well
designed internal controls
Systems documentation is important in
preserving the knowledge of a processs
operations

Auditing & Systems

Documentation
Systems documentation plays a key role in
the audit of GPFRs
o ASA 200
o ASA 315 para 95
o ASA 315 para 18 (a) & (b)

The auditor will be concerned with how

data is handled, the steps that are followed,
the internal controls built into the process
and the potential for material errors to
occur

The Law & Systems

Documentation
Auditors are facing legislative pressure to
use systems documentation
o Australian Auditing Standards have legal backing

Sarbanes Oxley Act has implications for

Australian companies listed on US stock
markets as well as Australian subsidiaries
of US companies

Reading Systems
Documentation

Reading Systems
Documentation (Cont)
Entities: Any person, place or thing
involved in a process, including
people and computers
o External entity
o Internal entity

A structured narration is a
written description of how a process
operates

Structured Narrative
Table

Structured Narrative Table

(Cont)

Process Maps
A process map is a simple
graphical representation
of a business process

Rules for Reading

Process Maps
1. The functional areas appear down the
left-hand side of the diagram
2. The functional areas are separated with
a solid line
3. The subfunctions are separated with a
dashed line

Rules for Reading Process Maps

(Cont)

4. Two standard symbols are used: a

rectangle for a process and a
diamond for a decision
5. Lines that connect processes are labelled
with documents

Rules for Reading Process Maps

(Cont)

6. Process rectangles describe processes not

documents
7. The process map reads left to right and
top to bottom

Process Map

Data Flow Diagrams

There are three types of data

flow diagrams:
1. A context diagram
2. A physical data flow diagram
3. A logical data flow diagram

Data Flow Diagram Symbols

External entity
System of interest for a context
diagram
Internal entity for a physical data
flow diagram
Process for a logical data flow
diagram
Data Store
Data Flow

Context Diagram
The context diagram provides a
representation of the system and the
entities that provide inputs to, or receive
outputs from, the system of interest
It is an overview of the data flow and says
nothing about what actually happens in
the process

Sample Context Diagram

Ordering Process

Sample Physical Data Flow

Diagram Ordering Process

Sample Logical Data Flow

Diagram Ordering Process

Level 0 & Level 1

DFDs
Level 0 data flow diagram: the highest
level logical data flow diagram providing an
overarching view of the processes that occur
Level 1 data flow diagram: the second
level logical data flow diagram that takes
one of the process bubbles from the level 0
diagram and expands it to provide detail
about the activities that occur within the
process

Systems Flowcharts

A systems flowchart represents a

combination of the logical and physical
data flow diagrams, because it provides
details of the processes that are performed
(logical perspective) as well as the physical
resources that are used to perform them
(physical perspective)

Common Flowchart
Symbols
Stop/start
or external
entity
Process

Single
document

Decision
point

Manual
keying

Disc
storage

Manual
process

Paper data
store

Balancing a Data Flow

Diagram
Diagrams (context, physical data
flow and logical data flow) with the
same external entities and flows to
and from these external entities are
called balanced data flow
diagrams

Drawing Systems
Documentation
Key Questions to Consider:
o Who are the people and things that
perform activities?
o What activities are being performed by
each entity?
o What are the inputs and outputs for
each activity?

Preparing a Process
Map
1. Identify entities and divisions
2. Draw the lines for each division
3. Indicate any subfunctions
4. Illustrate the activities of each
entity

Steps in Drawing a Context

Diagram
1. Identify the system of interest
o Draw a bubble and label it to represent
the system of interest

2. Identify the external entities

o Draw and label a rectangle for each
external entity

Steps in Drawing a Context

Diagram (Cont)

3. Identify any data flows between the

external entities and the system of
interest
4. Draw in the data flows connecting the
external entities and system of
interest and label them accordingly

Drawing a Physical Data Flow

Diagram
1. Identify the external entities
o Draw and label a rectangle for each
external entity

2. Identify the internal entities and

list them in the order they appear
in the systems operation

Drawing a Physical Data Flow

Diagram (cont)
3. Draw in a bubble for each internal
entity and label the entities
accordingly
4. Identify any data flows between
external entities and internal
entities
o Draw in these flows and label the
data flow arrows

Drawing a Physical Data Flow

Diagram (cont)
5. Identity the data flows between
the internal entities
o Draw in the data flows between
internal entities and label the arrows
with the physical document/
information that is being sent or
received.

Drawing a Physical Data Flow

Diagram (cont)
6. Identify any data stores that are
accessed to get data or to store
data as part of the process. These
may be paper-based or electronic
o Draw these data stores in and link
them to the entity that accesses
them by including data flow arrows

Drawing Logical Data Flow

Diagrams
1. Identify the external entities
2. Eliminate entities that just send or receive
items and any activities that are just send or
receive
3. Group remaining information processing
activities based on the underlying process they
perform
4. Number and label the underlying process
performed by the group of activities

Drawing Logical Data Flow

Diagrams (cont)
5. Identify any data flows between external
entities and processes
6. Identify the data flows between the
processes
7. Identify any data stores that are accessed
to get data or to store data
8. Ensure your logical data flow diagram
balances with your physical data flow

Rules for Drawing a

Flowchart
1. Avoid flows that cross over multiple
entities
2. Make sure that if a document enters
the system, you also show where it
ends up
3. Where a document is copied,
number the copies

Rules for Drawing a

Flowchart (Cont)
4. Documents moving from entity to
entity should be shown in each column
5. The filing of documents does not
require a manual process
6. Processes should have an input and an
output

Rules for Drawing a

Flowchart (Cont)
7. Only document normal processing
operations of the system
8. Where necessary use annotations
to clarify or explain ambiguities
9. Ensure that symbol labels add
meaning

Comparing the Different

Documentation Techniques
The process map gives an overall view of the
organisations process design and allows the
interactions among entities to be seen
The systems flowchart also shows the
entities and the tasks they perform
The process map and the systems flowchart
provide a very comprehensive picture of a
business process

Comparing the Different

Documentation Techniques (Cont)
Data flow diagrams provide less
detail
The context diagram can be
expanded into the physical & logical
data flow diagrams
One form of documentation
should not be viewed as

Overview of Chapter 6
The importance of systems documentation
was emphasised
Addressed the uses of systems
documentation
Legislative requirements have impacted on
systems documentation (internal controls)

Overview of Chapter 6

(Cont)

Defined process maps, data flow

diagrams and systems flowcharts
Worked through the procedures for
drawing up differing types of
documentation
Compared and contrasted the different
forms of documentation

Key Terms
o Balanced DFDs
o Context diagram
o Data Flow Diagrams
(DFDs)
o Entity (internal &
external)
o Level 0 & 1 DFD

o
o
o
o
o

Logical DFD
Physical DFD
Process map
System of interest
Systems flowchart