Question

1. Explain two reasons why it is important to have a working knowledge of DFDs and flowcharting. 2. What does the Sarbanes-Oxley Act require that is relevant to documentation tools? 3. Describe a situation in which data flow should be shown with two data flow lines instead of one. 4. Describe the different levels of DFDs.

Answer 1

Q.1 Explain two reasons why it is important to have a working knowledge of DFDs andflowcharting.

SOLUTION :following are the reasons

1.SOX requires auditors to evaluate internal control systems. Data flow diagrams and flowcharts are the two most frequently used development and documentation tools used in practice.

2, since systems development is extremely complex, DFDs and flowcharts are tools that are used to create order from chaos and complexity.

3. documentation tools and concepts are covered on the CPA exam.

Q.2 What does the Sarbanes-Oxley Act require that is relevant to documentation tools?

solution :The Sarbanes-Oxley Act requires that independent auditors understand theautomated and manual procedures an entity uses. One of the best ways to gain thisunderstanding is to use the flowcharts to document the internal control system, asweaknesses and strengths are more easily spotted from such graphic portrayals.

Q.3 Describe a situation in which data flow should be shown with two data flow lines instead of one

solution

A data flow may consist of one or more pieces of datum. The determining factor is whether the data elements always flow together at the same time. For example, "customer payment" have both payment and remittance data. Since these elements always flow together, only one data flow line is required. However, data flows between the customer andthe payment processes have customer inquiries and cash receipts; these data items do not always flow together at the same time. In such a case, two data flow lines will be shown

Q.4Describe the different levels of DFD

solution :

The highest-level or summary view DFD, which shows major inputs/outputs and a single process is called a context diagram. The DFD itself shows inputs, major processes, and outputs; each process in the DFD can be "exploded" or shown in greater level of detail withthe sub-processes and related data flows.