Solution manual accounting information systems 12th edition by romney and steinbart CH03

Data Flows: merchandise, payment, cash and register tape Data Source: customer Processes: capture sales and payment data and collect payment, give cash and register tape to manager St

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

Data 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 In contrast, data flow diagrams provide a graphic picture of the logical flow of data within an organization

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

Ch 3: Systems Development and Documentation Techniques

3.3 Compare the guidelines for preparing flowcharts and DFDs What general design

principles and limitations are common to both documentation techniques?

Similar design concepts include the following:

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

 Both measures require the designer to identify the elements of the system and to identify the names and relations associated with the elements

 Both methods encourage the designer to show only the regular flows of information and not

to be concerned with unique situations

 Both approaches require more than one “pass” through the diagramming or flowcharting process to accurately capture the essence of the system

The product of both methods is a model documenting the flow of information and/or documents

in an information system Both 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

Accounting Information Systems

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 the symbols are used, student answers will vary Possible examples include the following:

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, the monitor on your microcomputer

 Manual input: cash registers, ATM machines

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

 Magnetic disk: alumni information data base, a report stored on your PC hard disk

 Magnetic tape: archival student information

 On-line storage: a student information data base or an airline reservation data base stored on-line

 File: purchase order file for a department, a student housing contract file

Flow (Miscellaneous)

 Communication link: a telephone linkage that connects you to an on-line data base

Ch 3: Systems Development and Documentation Techniques

SUGGESTED ANSWERS TO THE PROBLEMS 3.1 Prepare flowcharting segments for each of the following operations:

Assorted Flowcharting Segments:

a processing transactions stored on magnetic tape to update a master file stored on magnetic tape

Old Master File

New Master File

File Update

actions

Trans-b processing transactions stored on magnetic tape to update a database stored on a magnetic disk

actions

Trans-File Update

Data base

c converting source documents to magnetic tape using a computer-based optical character reader (OCR)

OCR Source Documents

Conversion of Documents to Tape by OCR

Source Data

Accounting Information Systems

3.1 (continued) Assorted Flowcharting Segments

e reading data from a magnetic disk into the computer to be printed on a report

Data File

Report Report

Generation

f using a computer or terminal to key data from source documents to a file stored

on a magnetic disk

Source Documents

Ch 3: Systems Development and Documentation Techniques

3.1 (continued) Assorted Flowcharting Segments

h using a terminal to enter source document data and send it to a remote location where an online processing system records it in a database stored on magnetic disk

Source Data

Terminal ProcessingOnline

System

Data base

i a scheduled automatic backup of an internal hard drive to an external hard drive

Scheduled Automatic Backup

External Hard Drive

Accounting Information Systems

3.1 (continued) Assorted Flowcharting Segments

k enter employee hours recorded on time cards in the payroll transaction file maintained on disk and update wage data maintained on the payroll master file

Enter Time Card DataTime Card

Record time card data on the payroll transaction file and update wage data maintained

on the payroll master file

Payroll Transaction File

Payroll Master FileTerminal

Ch 3: Systems Development and Documentation Techniques

3.1 (continued) Assorted Flowcharting Segments

l use a terminal to access a price list maintained on disk 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 (paper)

Accounting Information Systems

3.2 Happy Valley Utility Company

a Draw a system flowchart of the billing operations, commencing with the

computer preparation of the meter reading forms and ending with the mailing of customer bills

Customer

Master

File

Meter FormPreparation

CurrentReading

CompletedMeter Forms

Mark-SenseDocumentReader

CustomerMeterData

Mail toCustomers

Sort ByCust #

CustomerMeterData

File UpdateandBilling

CustomerMasterFile

Error List

& Summary

Report

CustomerBills

Ch 3: Systems Development and Documentation Techniques

3.2

b Draw a system flowchart depicting customer payments processing, starting with the mail room operations and ending with the two printed reports

Checks Remittance

List of Other Receipts

Type Correct Stubs

Type Correct Stubs

Corrected Stubs

Corrected Stubs

Error List

& Summary Report

Report of Past-Due Accounts OCR

Document Reader

Payments Posting Run

Accounting Information Systems

3.3 Prepare a system flowchart of the process described

Payroll Processing for Dewey Construction Company:

Paycheck

Job Time Tickets

Key to Tape Encodings

Job Time Records Tape

Payroll Processing System

Payroll

Master

File

Work in Process Master File

Payroll Register

Earnings

Transactions and Summary

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

From Claimant

4 3

Adjuster's Report

4 3

N

START

From Claimant

Notice of Loss

Prepare proof of loss, claim recored

Notice of Loss

Claim Record 4

3 2 1 Proof of Loss Form

To Claimant

Adjuster's Report

2 1 Proof of

Claim Payment

Adjuster's Report 1

Proof of Loss

Prepare Check &

Disbursement list 2

Proof of Loss

Disbursement List

Check

To Claimant

To Accounting

3.5

a Prepare a document flowchart that indicates the interaction and use of these documents among all departments at Beccan Company’s central facility It should provide adequate internal control over the receipt, issuance, replenishment, and payment of tires and supplies You may assume that there is a sufficient number of document copies to ensure that the perpetual inventory system has the necessary basic internal controls

b Using the flowcharting conventions discussed in Focus 3.2, critique the instructor provided CMA solution List all the ways the CMA solution violates those

flowcharting guidelines

Adapted from the CMA Exam Note: the CMA solution shown does not follow the flowcharting conventions discussed in the chapter When the authors use this problem they have the students critique the CMA exam solution (assignment 3.5b), based upon the conventions discussed in Focus 3.2

Ch 3: Systems Development and Documentation Techniques

Employee

Management

Governmental Agencies

Time Card Data

Employee Paychecks

Internal Reports

Withholding Reports Personnel Data

Accounting Information Systems

1.0ProcessEmployeeTimecards

2.0UpdatePayroll File

3.0GeneratePaycheck

4.0GeneratePayrollReports

Employee

AgenciesPayroll File

TimeCardData

PersonnelChanges

Paycheck

InternalReports

WithholdingReports

Ch 3: Systems Development and Documentation Techniques

3.6 b Prepare a document flowchart to document the payroll processing system at

No-Wear Products

No-Wear Products-Payroll

Payroll Employees in Functional

Record Time Data

Payroll File

Process Payroll, Prepare Checks and Reports

Paycheck

Employee

Enter Payroll Changes

Process Payroll Changes

From Human Resource Dept

Payroll Changes

N N

Accounting Information Systems

Accounts Payable Report

Receiving Report

Invoice

Payment &

Remittance Advice

Ch 3: Systems Development and Documentation Techniques

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

Payment &

Remittance Advice

2.0 Collect & Store Purchase Orders &

Receiving Reports

1.0 Record Payable

Purchase Orders

Receiving Reports Vendor Invoices

3.0 Make Payment

Accounts

Payable

Cash Disbursements Journal

4.0 Prepare Management Reports

Accounting Information Systems

3.7

b Prepare a document flowchart to document accounts payable processing at S&S.

S&S Accounts Payable

From Purchasing From Receiving From Vendor

Purchase Order Receiving Report Vendor Invoice

Accounts Payable Ledger

Accounts Payable Report

A

D C

Purchase Order Receiving Report Invoice Check

A

A

Purchase Order Receiving Report Invoice

Prepare Vendor Checks

Cash Disbursements Journal

Purchase Order Receiving Report Invoice Check 1

B Check 2

B Purchase Order

Receiving Report Invoice Check 2 Check 1

Review and Sign Checks

Check 1

Purchase Order Receiving Report Invoice Check 1

To Vendor

C

Accounts Payable Report

Review Accounts Payable Report

D D

Ch 3: Systems Development and Documentation Techniques

Inventory System

Accounting Information Systems

3.8 a (continued) Level 0 Data Flow Diagram: Acquisition/Payment System at Oriental

Trading:

1.0PreparePurchaseOrder &

Notification

System

2.0UpdateAccountsPayable

3.0Pay Vendor

InventoryFile

VendorFile

Accounts

Payable

MasterFile

GeneralLedger

Purchase Order

VendorAcknowledgement

Check

Receiving Reports

Purchase Orders

Vendor Invoices

Ch 3: Systems Development and Documentation Techniques

Inventory File

Vendor File Purchase Order

From Receiving Department From Vendor

Receiving Report Invoice

Match Purchase Order, Receiving Report, and Invoice Prepare Payment Authorization

Payment Authorization

Purchase Order

Receiving Report Invoice

Enter Accounts Payable Data for Update

D

Update Accounts Payable Master File

Accounts Payable Master File

Payment Authorization

Check

To Vendor

General Ledger Master File

Purchase Order Notification

Enter Vendor Acknowledgment

Enter payment Authorization

B

B

Accounting Information Systems

Payment atSale

Remitances

on Account

Deposit

CashReceiptsReport

Aged Trial Balance

Ch 3: Systems Development and Documentation Techniques

3.9 a (continued) Level 0 Data Flow Diagram of the Cash Receipts System at S&S:

Customers

1.0 Process Payments

2.0 Update Customer Accounts

Bank

3.0 Prepare Reports

Collections

Remittance File

Accounts Receivable Ledger

Payments at Sale Remittances on Account

Endorsed Checks &

Cash, Deposit Slip

Remittance Slips

Aged Trial Balance

Cash Receipts Report

Accounting Information Systems

3.9

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

S&S Cash Receipts System

Remittance Slips

D

Accounts Receivable Ledger/File

Generate Weekly Reports

Cash Receipts Report Aged Trial Balance

To Management

To Credit &

Cash and Checks

To Bank Endorse

Checks and

Prepare

Deposit Slip for

Cash & Checks

Cash and Checks

Ch 3: Systems Development and Documentation Techniques

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

operations

Coupon OrderPhone OrderCancellationPayment

Order InquiryProduct Inquiry

PaymentInquiry

InvoiceShipping NoticeCancellation Response

Order InquiryResponseProduct InquiryResponsePayment InquiryResponse

Accounting Information Systems

3.10 Level 0 Data Flow Diagram for a mail order company:

Customer

Customer1.0

ProcessOrderTransaction

2.0ProcessShipment

Customer

3.0ProcessPaymentTransaction

phone order

coupon orderorder inquiry

order inquiryresponsevalid order

productdetails

validorder

invoice

shippingnoticecustomer

details

productdetails

billedorder

paymentinquiry

billedorder

payment

paymentinquiry

Ch 3: Systems Development and Documentation Techniques

3.10 Level 1 Data Flow Diagram for a mail order company:

Order File

Product File

1.1ProcessOrder

1.2Processordercancellation

Customer

1.3Processorder inquiry

1.4Processproductinquiry

Customer

order

valid order

cancelledorder

ordercancellation

cancellationresponse

order inquiry

orderdetails

productdetails

Accounting Information Systems

3.11

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

Student

CourseRegistrationSystem

Instructor

Registration request

Course enrollmentreports

Fees noticePrerequisite noticeCourse closed noticeStudent acceptancenotice

Level 0 Data Flow Diagram for a course registration system:

Student

1.0Registerstudent

2.0Preparecourseenrollmentreports

Instructoraccounts receivable file

student records file

class lists file

course records file

Registrationdetails

feesnoticeprerequisitenoticecourse closednotice

student

course enrollmentreport

Ch 3: Systems Development and Documentation Techniques

3.11 a (continued) Level 1 Data Flow Diagram for a registration system:

accounts receivable file

student record file

course file

class list file

1.1 Check fees due

1.2 Check prerequisites

1.3 Check class availability

1.4 Register student Student

paid registration details fees notice

valid registration details

prerequisite notice

closed course notice

accepted registration details

registration

details

student acceptance notice