Chapter 3 Solutions [PDF]

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CHAPTER 3 SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 3.1



Identify the DFD elements in the following narrative: A customer purchases a few items from a local grocery store. Jill, a salesclerk, enters the transaction in the cash register and takes the customer’s money. At closing, Jill gives both the cash and the register tape to her manager. Data Flows: merchandise, payment, cash and register tape Date Source: customer Processes: capture sales and payment data and collect payment, give cash and register tape to manager Storage: sales file (register tape), cash register



3.2



Do you agree with the following statement: “Any one of the systems documentation procedures can be used to adequately document a given system”? Explain. It is usually not sufficient to use just one documentation tool. Every tool documents a uniquely important aspect of a given information system. For example:  System flowcharts are employed to understand physical system activities including inputs, outputs, and processing.  Data flow diagrams provide a graphic picture of the logical flow of data within an organization.  Business process diagrams show the activities a company engages in to do business and the diagrams can be used to evaluate internal controls strengths and weaknesses. Each alternative is appropriate for a given aspect of the system. As a result, they work together to fully document the nature and function of the information system.



3-1 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



3.3



Compare the guidelines for preparing flowcharts, BPDs, and DFDs. What general design principles and limitations are common to all 3 documentation techniques? Similar design concepts include the following: 



All three methods require an initial understanding of the system before actual documentation begins. This insures that the system is properly represented by the diagram.







All three methods require the designer to identify the elements of the system and to identify the names and relations associated with the elements.







All three methods encourage the designer to show only the regular flows of information and not to be concerned with unique situations.







All three require more than one “pass” to capture the essence of the system accurately.



The product of all three methods is a model documenting the flow of information, processes, and/or documents in an information system. All three documentation methods are limited by the nature of the models they employ, as well as by the talents and abilities of the designer to represent reality. 3.4



Your classmate asks you to explain flowcharting conventions using real-world examples. Draw each of the major flowchart symbols from memory, placing them into one of four categories: input/output, processing, storage, and flow and miscellaneous. For each symbol, suggest several uses. The major flowcharting symbols and their respective categories are shown in Fig. 3.8 in the text. With respect to how symbols are used, student answers will vary. Possible examples include: Input/Output Symbols  Document: an employee time card, a telephone bill, a budget report, a parking ticket, a contract  Display: student information monitors, ATM monitors, a computer monitor. Processing Symbols  Processing: processing a student payroll program, assessing late fees  Manual operation: writing a parking ticket, preparing a paper report, collecting and entering student payments Storage Symbols  Database: alumni information database, a student information database or an airline reservation database stored on-line.  Magnetic tape: archival student information Flow (Miscellaneous)  Communication link: a telephone linkage that connects you to an on-line database. 3-2 © 2015 Pearson Education, Inc.



Accounting Information Systems



SUGGESTED ANSWERS TO THE PROBLEMS



Prepare flowcharting segments for each of the following operations:



3.1



a.



processing transactions stored on a sequential medium such as a magnetic tape to update a master file stored on magnetic tape Old Master File



Transactions Update File



New Master File



A sequential medium has to be read and processed from beginning to end and you cannot store the updated information on the input tape. Instead, you have to create a new master file on a new tape, as shown above



b.



processing transactions stored on magnetic tape to update a database



Transactions



Update File



Data base



Virtually all databases are stored on a random access device so a record that is to be updated can be found, updated, and written back to the same hard drive or other random access device.



c.



querying a database and printing the query result



Data File



Generate Report 3-3 © 2015 Pearson Education, Inc.



Report



Ch. 3: Systems Development and Documentation Techniques



3-4 © 2015 Pearson Education, Inc.



Accounting Information Systems



3.1 (continued) Assorted Flowcharting Segments d.



using a terminal to enter paper-based source document data and send it to a remote location where a corporate computer updates the company database. View Data Entered Update Database



Terminal



Source Data



e.



Database



Enter Data



using a terminal to query your customer sales database D Display Query Terminal



Query Customer Sales Data



Customer Sales Database



Enter Query



f.



a scheduled automatic backup of a database to an external hard drive



Database



Scheduled Automatic Backup



3-5 © 2015 Pearson Education, Inc.



External Hard Drive



Ch. 3: Systems Development and Documentation Techniques



3.1 (continued) Assorted Flowcharting Segments



g.



use a terminal to enter employee hours recorded on time cards to update both the payroll transaction file and the wage data in the payroll master file



View timecard data entered



Payroll Transaction File



Terminal



Timecard



Enter timecard data



Record timecard data on the payroll transaction file and update wage data maintained on the payroll master file



Payroll Master File



3-6 © 2015 Pearson Education, Inc.



Accounting Information Systems



3.1 (continued) Assorted Flowcharting Segments h.



use a terminal to access a price list in the sales database to complete a purchase order. An electronic copy of the purchase order is sent to the vendor and a backup copy is printed and filed by vendor name Purchase Order (electronic)



to To Vendor



View Price List



Terminal



Access price list, create electronic purchase order, & print paper backup



Sales Database



copy



Request Price List Purchase Order (paper)



A



i.



make an airline reservation online from your home computer



Customer View Reservation Data



Computer



Airline



Make an airline reservation



Update Reservation file



Reservation request 3-7 © 2015 Pearson Education, Inc.



Reservation File



Ch. 3: Systems Development and Documentation Techniques



3.2



a.



Prepare a system flowchart of the process described. Remote location jobtime ticket



View jobtime ticket form Terminal Terminal



Express-mailed weekly to headquarters



Enter job-time ticket data



Payroll summary report



Weekly: Update payroll, work in process, & payroll transaction databases, disburse funds, print reports



Scan job time tickets



Disburse Funds Employee Payments Government Payments



View payroll data



401K company Payments



Work in process database



Payroll database



Payroll transaction file



3-8 © 2015 Pearson Education, Inc.



Employee query



Accounting Information Systems



3-9 © 2015 Pearson Education, Inc.



3.2



b.



Employee



Prepare a business process diagram for the process described. Activities Performed



Job Sites Enter jobtime tickets



Data Processing Process jobtime tickets



Weekly



Remote locations



Express mail paper jobtime tickets



Enter jobtime tickets daily



Update payroll database, work in process database, payroll transaction file



Payroll Supervisor



Disburse funds to employees, government, 401K company



Create and send summary payroll report



Review summary payroll report



Employees Access payroll data using Internet



3-10 © 2015 Pearson Education, Inc.



Accounting Information Systems



3.3



Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims.



a.



CLAIMS DEPARTMENT



ADJUSTER From claimant



Notice of Loss



START



1 2



Proof of Loss Form Proof of



Prepare proof of loss form, claim record



From Claimant



3



Loss



DATA PROCESSING



4 1 2



Proof of Loss Proof of Loss



4



Adjuster’s Report



To Claimant Adjuster’s Report



Loss



2



1



Proof of Loss Proof of



3



Authorize Claim Payment



2



Loss



4



Claim Record



Proof of Loss



N



2



1



Proof of Loss Proof of



Claim Record



Notice of Loss



2



Prepare Separate Report



Assist claimant with form



Notice of Loss



3



Proof of Loss



Prepare Check & Disbursement List



Disbursement List



1



Proof of Loss



N



Adjuster’s Report



To claimant



3-11 A © 2015 Pearson Education, Inc.



Check



To Claimant



Accounting



Ch. 3: Systems Development and Documentation Techniques



3.3



b.



Employee Claims Department



Prepare a BPD to reflect how ANGIC Insurance Company processes its casualty claims.



Activities Performed From Claimant Receive notice of loss



Data Processing Department



Adjustor



Claims Department



Prepare proof of loss form, send to claimant



Initiate record of claim



Receive notice of loss & record of claim



Help claimant complete proofof-loss, agree on loss amount



Prepare adjuster report



Receive proofof-loss, adjustor report



Authorize payment to claimant



3-12 © 2015 Pearson Education, Inc.



Receive authorized proof-ofloss



Prepare & disburse payment check



Prepare cash disbursements list



Accounting Information Systems



Accounting Review cash disbursement list 3.4



Employee Retail Store



Prepare a BPD that documents Beccan’s business processes. Activities Performed Weekly & rush orders



Review inventory, place order Shipping Clerk



Warehouse Inventory Control Clerk Purchasing Department



Quarterly



Count inventory and reconcile to corporate database



Receive goods



Fill orders, authorize delivery, ship goods System generates purchase requisition



Adjust & approve purchase requisition



Finalize & approve system generated PO



Maintain & update perpetual inventory system



Send PO to vendor



3-13 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



Warehouse Receiving Clerk



Receive system prepared receiving report



Receive goods, complete receiving report: date and quantity



Accounts Payable



From vendor Get receiving report & PO



Receive vendor invoice



3-14 © 2015 Pearson Education, Inc.



Reconcile P.O., receiving report, invoice



Disburse funds to vendors



3.5 a.



Prepare a context diagram and level 0 DFD to document the payroll processing system at No-Wear Products. Context Diagram for the payroll processing system at No-Wear Products



Employee Time Card Data Operating Documents



Employee Paychecks



Payroll Processing System



Internal Reports



Management



Human Resources Department Personnel Data Withholding Reports



3-15 © 2015 Pearson Education, Inc.



Governmental Agencies



Ch. 3: Systems Development and Documentation Techniques



3.5



a. (continued.)



Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products.



3-16 © 2015 Pearson Education, Inc.



Accounting Information Systems



Time Card Data



Operating Departments



Human Resources Department



Personnel Changes 1.0 Process Employee Timecards



2.0 Update Payroll File



Payroll File



4.0 Generate Payroll Reports



3.0 Generate Paycheck Internal Reports



Employee



Pay check Management



3.5



Withholding Reports



Governmental Agencies



b. Prepare a document flowchart to document the payroll processing system at No-



Wear Products. 3-17 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



3-18 © 2015 Pearson Education, Inc.



Accounting Information Systems



3.6 a.



Prepare a context diagram and a level 0 DFD to document accounts payable processing at S&S.



Purchasing



Receiving Purchase Order Receiving Report



S&S Accounts Payable Invoice



Vendor



Payment & Remittance Advice



Accounts Payable Report



3-19 © 2015 Pearson Education, Inc.



Management



Ch. 3: Systems Development and Documentation Techniques



3-20 © 2015 Pearson Education, Inc.



Accounting Information Systems



3.6



a. (continued.) Level 0 Data Flow Diagram of S&S Accounts Payable



Vendor



Purchasing



Receiving



Invoice Purchase Order



1.0 Record Payable



2.0 Collect & Store Purchase Orders & Receiving Reports



Receiving Report



Purchase Orders Accounts Payable



Vendor Invoices



Receiving Reports



Cash Disbursements Journal



3.0 Make Payment



Accounts Payable Report



4.0 Prepare Management Reports



Payment & Remittance Advice



Paid Invoices



Management



3-21 © 2015 Pearson Education, Inc.



Vendor



Ch. 3: Systems Development and Documentation Techniques



3-22 © 2015 Pearson Education, Inc.



3.6 3.7 a.



Develop a context diagram and a level 0 DFD for the cash receipts system at S&S.



Bank Deposit



Payment at Sale Cash Receipts System



Customers Remitances on Account



Cash Receipts Report



Management



Aged Trial Balance Credit and Collections



3-23 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



3.7



a. (continued)



Customers



Level 0 Data Flow Diagram of the Cash Receipts System at S&S:



Remittance File



Payments at Sale Remittances on Account



1.0 Process Payments



Remittance Slips



2.0 Update Customer Accounts



Endorsed Checks & Cash, Deposit Slip



Bank



Accounts Receivable Ledger



3.0 Prepare Reports



Aged Trial Balance



Cash Receipts Report



Management



3-24 © 2015 Pearson Education, Inc.



Credit and Collections



Accounting Information Systems



3.7



b.



Prepare a document flowchart to document the cash receipts system at S&S.



3-25 © 2015 Pearson Education, Inc.



3.7



c.



Employee Treasurer



Prepare a business process diagram for the cash receipts system at S&S Activities Performed From customer Receive cash and remittance advices, Endorse checks, and Prepare deposit slip



Clerk Deposit cash in bank Accounts Receivable



Management: Scott & Susan



Credit and Collections



Weekly



Receive remittance advice, Update accounts receivable



Generate cash receipt report & aged trial balance using A/R ledger



Review cash receipts report



Review aged trail balance



3-26 © 2015 Pearson Education, Inc.



3.8



Draw a context diagram and at least two levels of DFDs for the preceding operations.



Invoice



Coupon Order Phone Order Cancellation Payment



Shipping Notice Cancellation Response Mail Order System



Customer Order Inquiry Product Inquiry Payment Inquiry



Customer Order Inquiry Response Product Inquiry Response Payment Inquiry Response



3-27 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



3.8.



Level 0 Data Flow Diagram for a mail order company:



phone order coupon order



cancellation response



order inquiry 1.0 Process Order Transaction



Customer



product inquiry response



Customer



order inquiry response



order cancellation product inquiry



valid order invoice Order File



product details



Customer shipping notice



valid order customer details 2.0 Process Shipment



Product File product details



billed order



Customer File



payment inquiry



Accounts Receivable File



Customer



billed order



payment 3.0 Process Payment Transaction



3-28 © 2015 Pearson Education, Inc.



payment inquiry response



Accounting Information Systems



3.8.



Level 1 Data Flow Diagram for a mail order company:



3-29 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



Customer order cancellation



1.1 Process Order



valid order



cancelled order



order



1.2 Process order cancellation



cancellation response



Order File



Customer order details Product File order inquiry product details 1.4 Process product inquiry



1.3 Process order inquiry



product inquiry response



product inquiry inquiry response



Customer



3-30 © 2015 Pearson Education, Inc.



Accounting Information Systems



3.9 a.



Prepare a context diagram and at least two levels of DFDs for this process.



Registration request Course enrollment reports Course Registration System



Student



Fees notice Prerequisite notice Course closed notice Student acceptance notice



Level 0 Data Flow Diagram for a course registration system:



3-31 © 2015 Pearson Education, Inc.



Instructor



Ch. 3: Systems Development and Documentation Techniques



accounts receivable file



Instructor



student records file



Registration details



Student



fees notice



class lists file



1.0 Register student



course records file



prerequisite notice course closed notice student acceptance notice



3-32 © 2015 Pearson Education, Inc.



course enrollment report 2.0 Prepare course enrollment reports



Accounting Information Systems



3.9



a. (continued)



Level 1 Data Flow Diagram for a registration system:



accounts receivable file



1.1 Check fees due



student record file paid registration details



course file



fees notice registration details



1.2 Check prerequisites



prerequisite notice



class list file



valid registration details 1.3 Check class availability closed course notice



Student student acceptance notice



3-33 © 2015 Pearson Education, Inc.



accepted registration details



1.4 Register student



Ch. 3: Systems Development and Documentation Techniques



3.9



b.



Prepare a flowchart to document this process.



Student



Registration system



Check for unpaid fees



Accounts Receivable



Check Course Prerequisites



Student transcripts



Registration Request



Check course availability & add student to class



Class Enrollment



Calculate fees and tuition, update accounts receivable, send student registration report



If fees are owed, registration is cancelled and the registration report becomes a bill for unpaid fees. If a requested class is full, the report indicates “course closed.” If the student is accepted into the course(s), then course day, time, and room are printed next to the course. Fees and tuition are printed on the report.



Send course enrollment reports



Course Enrollment Report



Instructors 3-34 © 2015 Pearson Education, Inc.



Accounting Information Systems



3.10 a.



Prepare and file a tax return with the tax owed to the Internal Revenue Service.



Context



Withholding Form



Prepare Taxes



IRS 1040 Form



Employer



IRS



Level 0



Withholding Form



1.0 Collect Tax Documents



IRS



IRS Payment and Form 1040



Tax Documents Employer



2.0 Prepare IRS Form 1040



3-35 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



3.10 (continued) b.



A customer pays an invoice with a check. Accounts receivable is updated to reflect the payment. The check is recorded and deposited into the bank.



Context



Deposit



Payment Cash Receipts



Customer



Bank



Level 0



Payment Data



2.0 Record Customer Payment



Accounts Receivable



1.0 Record Cash Receipts



Payment



Payment Customer



Bank



3-36 © 2015 Pearson Education, Inc.



De



3.0 Prepare Deposit



po



si t



Cash Receipts



Accounting Information Systems



3.10 (continued) c.



A customer places an online order to purchase merchandise. The order is approved, filled, and sent to the customer with an invoice.



Context



Purchase Order Customer



Merchandise



Order Entry System



Invoice



Level 0



3-37 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



Purchase Order



1.0 Receive Order



Open Orders



Customer



Invoice



2.0 Approve Order



Sent Invoice Copies



4.0 Prepare Invoice Approved Orders



Shipped Orders



3.0 Fill and Ship Order



3.10 (continued)



d.



An inventory request is received by the purchasing department. The purchasing department prepares and sends a purchase order to the appropriate vendor.



Context



Inventory Department



Inventory Request



Purchasing System



Vendor Purchase Order



3-38 © 2015 Pearson Education, Inc.



Accounting Information Systems



Level 0



Inventory Request



Inventory Department



1.0 Record Purchase Request



Inventory



Purchase Order 2.0 Prepare Purchase Order



Open Purchase Requests



3-39 © 2015 Pearson Education, Inc.



Vendor



Approved Vendor List



Ch. 3: Systems Development and Documentation Techniques



3.10 (continued) e.



A vendor invoice is received, reviewed, and compared against the appropriate purchase order, then paid and filed.



Context



Invoice Vendor



Cash Disbursements Payment



Level 0



Invoice



1.0 Receive Invoice



Open Invoices



Vendor 2.0 Approve Invoice Payment



Payment approval 3.0 Prepare Payment



3-40 © 2015 Pearson Education, Inc.



Open Purchase Orders



Accounting Information Systems



3-41 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



3.10 (continued) f.



A bill of lading for ordered inventory is received from a vendor, recorded, checked against the appropriate purchase order, and filed.



Context



Bill of Lading



Receiving System



Vendor



Level 0



Bill of Lading



2.0 Compare Bill of Lading with Purchase Order



1.0 Record Bill of Lading Vendor



Bill of Lading Open Purchase Orders



3-42 © 2015 Pearson Education, Inc.



Accounting Information Systems



3-43 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



3 .11 Prepare a program flowchart to help Melanie program this process.



3-44 © 2015 Pearson Education, Inc.



Accounting Information Systems



Start



Input Weight (W), Height (H)



Body Mass Index (BMI) = W/H^2



BMI < 18.5



Yes



Weight Status (WS) = Underweight



No



WS = Normal



No



BMI > 25



Yes



WS = Overweight



Print W, H, BMI, WS



End



3-45 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



3.12 DFD’s



1. Statements are prepared and sent to customers from data contained in the accounts receivable data store.



B



2. A vendor sends a sales invoice to the accounts payable process.



C



3. The cash receipt process updates the cash receipts data store.



A



FLOWCHARTS



G



4. A check is manually prepared from data on a vendor invoice. 5. The system prepares a check that is mailed to the customer.



I



6. A report is prepared from data stored on magnetic tape.



F



7. Billing data are entered into a system and used to update both the sales order data base and the customer data base.



D



8. Data from a cancelled paper invoice are used to update the cash disbursements file.



J



9. The system prepares two copies of a sales order; one copy is sent to the customer and the other is filed.



H



10. An accounts receivable aging report is prepared from the accounts receivable master file and the cash receipts master file.



E



3.13



Students are to replicate the flowchart presented in the problem using documentation software such as Visio, Microsoft Word, Microsoft Excel, etc.



3.14



Students are to replicate the data flow diagram presented in the problem using documentation software such as Visio, Microsoft Word, Microsoft Excel, etc.



3-46 © 2015 Pearson Education, Inc.



Accounting Information Systems



SUGGESTED ANSWERS TO THE CASES 3-1



You are the systems analyst for the Wee Willie Williams Widget Works (also known as Dub 5, which is a shortened version of 5 Ws). Dub 5 produces computer keyboard components. It has been producing keyboards for more than 20 years and has recently signed an exclusive 10-year contract to provide the keyboards for all Dell personal computers. As the systems analyst, you have been assigned the task of developing a level 0 DFD for Dub 5’s order processing system. You have finished gathering all the information you need to develop the first-pass DFD and now want to complete the diagram. Level 0 DFD for Dub 5:



3-47 © 2015 Pearson Education, Inc.



Ch. 3: Systems Development and Documentation Techniques



Order 1.0 Credit Review



Customer



Credit file



Order Rejection Approved orders 2.0 Enter customer orders Customer



Inventory



Open Orders



3.0 Check Inventory & Prepare Packing Slip



Warehouse



Packing Slip



Shipping Notice



4.0 Prepare Invoice



Invoice Copy



Accounting



Invoice



Invoice Customer



3-48 © 2015 Pearson Education, Inc.



Accounting Information Systems



3-1 Level 1 DFD for Dub 5:



Customer Order Credit File



1.1 Check Credit



Customer Account



Approved Order



Rejected Order Customer 1.2 Check Current Order against Credit Limit



Over Credit Limit Notice



Credit Application



Rejected Order Lacking Credit Approval



1.3 Prepare Credit Application



Note: The Order Rejection notice shown on the context level diagram and the level 0 diagram can take two forms: The Over Credit Limit Notice or the Credit Application. These two items are shown on the level 1 DFD.



3-49 © 2015 Pearson Education, Inc.



Case 3-1 Dub 5 Business Processing Diagram Employee Order Processing Clerk



Activities Performed



From Customer



Receive Customer Order



Credit Debt



Customer not approved for credit: OR order exceeds credit limit



No



Yes No Customer Approved for Credit?



Enter Customer Order; Update Customer File



Sufficient Inventory



No



Notify customer of insufficient inventory



Yes



File Invoice Prepare Packing Slip



Send customer credit application, notify order shipped when credit approved



Yes Notify customer: order shipped when payment received



Warehouse



Ship goods to customer



Billing Prepare customer invoices; send copies to customer, order processing, accounting



3-50 © 2015 Pearson Education, Inc.



Place notice in file: customer invoice sent



Accounting Information Systems



Accounting Update Accounts Receivable



3-51 © 2015 Pearson Education, Inc.