Flowcharting Flashcards
What is a flowchart?
a graphical presentation of the activity and flow of information in a transaction process
When is a flowchart normally created in an audit?
in the planning stage during the auditor’s assessment of CR
What are the ways the auditor documents understanding of design an operation of various controls?
memorandum - description of the system
Questionnaire - question the client about design and operation of system
flowchart - draw a visual depiction of the system
What are the rules for creating a questionnaire about internal control?
questions are created with yes or no responses in mind
yes - control is designed properly
no - potential control deficiency
In reviewing a flowchart, what 3 things is an auditor especially interested in seeing?
departments involved with a particular system
documents created in that system and what use is made of them
control processes and procedures that are performed in the system that are relevant to the assessment of internal control
In flowcharting, what does the triangle symbol depict?
a file or off-line storage
labeled to indicate how it is filed (alpha, numeric, date)
if document comes back out of the triangle it is a pending file
In flowcharting, what does the diamond symbol depict?
decision point
usually labeled with a question that is answered yes or no with different actions depending on the answer
In flowcharting, what does the rectangle symbol depict?
computer operation
In flowcharting, what does the square symbol (rounded corners) depict?
auxiliary operation, helpful but unnecessary operation
In flowcharting what does the five-sided symbol depict?
a document or some other tangible output is sent off-page either to another system or to a location outside of the company
What does the symbol for disk storage look like?
hockey puck
In flowcharting, what symbol is used to depict a document?
a rectangle with a curved bottom line
What are the advantages of using a flowchart to document the auditor’s understanding of the design of a system or group of activities?
a visual depiction of the entire AIS to easily provide a view of the system in its entirety
What are the disadvantages of using a flowchart to document the auditor’s understanding of the design of a system or group of activities?
control deficiencies do not always stand out
auditor must work through the system and identify deficiencies
