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    Introduction to Accounting Information Systems

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    1. Why do auditors prepare analytic flowcharts of processing systems?

    2. Is flow charting useful in analyzing the resources required to implement a system? If so, explain its benefits towards implementing a system.

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    https://brainmass.com/business/accounting/introduction-accounting-information-systems-276749

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    1. Auditors prepare analytical flowcharts of processing systems to get a 'map' of the entire system so that they can identify strengths and weaknesses of the system, identify and analyze resources required to make the system a success, and to enable them to drill down to problems more quickly to allow them to troubleshoot and fix a problem more efficiently. The flowchart helps to give the auditor a better feel for how a system works, particularly when he or she isn't as familiar with some of the processes as an employee who is knowledgeable about one key part.

    A processing system, like most things, is only as good as its worst performing part or 'weakest link'. The flowchart can help the auditor to more easily identify these parts and to offer a potential solution. Also, as mentioned before, if there is some sort of problem with how information is processed and/or stored, the flowchart will help highlight these trouble areas better than random trial and error will.

    2. Flowcharting is one of the best ways to help identify and analyze resources required to implement a system. For example, a flowchart may show that data storage will be the terminal end to, for example, four processes from four different departments within a firm. Because of the need for the ability of these departments to integrate their data, we can estimate the typical present and future usage of each department and identify and analyze the various archival opportunities available. Without the flowchart or 'process map' in the beginning, each department would have likely purchased inadequate equipment.

    In addition, firms can use flowcharting as a means to identify and analyze the required level of other resources including humans. For example, a flowchart reveals that, because of the need of separation of duties, there has to be three technicians at a position within the firm. Without the flowchart, the firm might have simply hired one technician to perform the required task and, perhaps, a huge security breach might have resulted. However, by mapping the process from the beginning, the firm will likely have the one employee perform a bulk of the work while segregating the duties by having two other techs from a different department cross-trained in the desired area.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com October 5, 2022, 12:45 am ad1c9bdddf>
    https://brainmass.com/business/accounting/introduction-accounting-information-systems-276749

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