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Topic
: Intro to
System
and
System
Documentation
.
System
Generic
System
:
Accounting
Information
System
:
change
input
to output
Input :
Output
:
Entities in
data
Process done
Transformed Users
of
Input
Process C
Output
a Inaccurate
[accidental
typos
/Control
:
Preventative measures
3 Incomplete I
didn't do all]
Money/resource
lost
Invalid/inaccurate/incomplete
Info
cannot be trested
in
put
4 .
Centralized
Storage
of Data
efficiency
, ↓duplication
s removes
possibility
of
inconsistent
data
takes
up storage
Integrated
resource
planning
system
or
Enterprise
resource
planning
(ERP)
Centralised database to ↓
duplication,
makes
data available
in
timely
manner across
organisation
System
documentation [DFD
,
SFC]
1
Graphically documenting
a
system
(What ,
who
,
how) <
quickly identify
how
system
works
1
clear communication
, identify
areas for improvement
Drawings
include
:
Source
of
input
2 Input
3
Processers (What/who)
Howdatharestored
5
Output
66 Destination
External
Internal bubble
Data
Store External
outside bubble
outside
bubble
External
<
typically
non-employees
(don't
handle
sensitive data)
[but also internal staff + internal
entity
only
if
they
perform process
Process I
company
Stepstodraw
DFD
:
Prepare
table of
entities and activities
:
based on narrative
&* Determine
scope
of
process
to be
documented. ~
Processing
[Sales Order/Billing)
LVIO DFD
a Chronological
b
EXCLUDEER c Include
implied
activities
exception/error 7
↓
routines Not
explicitly
described ;
must be
performed
"At the
end ofeach
day"
2
1"update
Computerized
AR master"
Computer
do ;
not human
"Throughout
the
day"
!
W
2
"automically
prints"
, must retrieve data from
somewhere
"Verify/check/Reconcile"
: 3 IF
gottime
discrepancy
s then store in
temp
file/retrieve
ALWAYS
DONE in process ,
from
temp
file
-NOTER
.
Conly
if not
done
normally
exclude
4
. Draw
the DFDs
a Context ↓
Physical
DFD
O
Logical
DER
Summary
;
Infrastructure
Activities
that
defines
Scope
Physical
form
system
performs
a. Draw the Context
Diagram
Anopata
Store
&
* ONLY
ONE
BUBBLE
s
process
being
documented
* At
least 1
rectangle
External entities
Source
Data
label
(No
. )
Destination
External
entity
S External
Name Intity
Simple
↓
Process
HAS to be a
NOUN
Doesn't
separate
Generic
.
1
Not
specific
to
system
.
manual/physical
[
What are
you sending
over
Don't include action (verb)
4a)i)
Explode
context
diagram
into
physical/logical
DFD
L
E
.
g.
Sales
Order
Process
46
.
Physical
DFD
Bhasdata stor
1 What/who
Physical
form
Paperoelectricform? Datastores
Paper
or
computer
file?
Duplicate * Duplicate Can
NEVER
be verbs
External
&
Data label in
physical
form External
entity
entity
Internal
Physical
entity
Physical
form
L
form (
internal
>
Internal
BUTS
Trave
entity
a
entity
No need to label
sure
you
~
separate
in/out
actions
M
No
Data store
need to be
4 :
Logical
DFD
& Must
have same number of
data stores as
physical
logical
steps
~ What actions
Where are the
data store
~ Bubble , the action (X
internal
entity
Unlik
physical
DFD)
min 4 ,
max
> bubbles
I
group
up
important sub-processes
bubbles
can
be linked
directly
8
S
8
>
. 8
~
indirectly
through
data store
↓
Noun ;
generic
Generic
- Be
careful about backflows
!
from
2 Implies
you
need Input
.
to
process
↓
M
W
[mb
missing
data store)
X
can
not
1
keys
in
:
Computer
output
K
.
Computer
screen
, display
.
Process done
by
computer
(receive input/retrieve datal
m
Process done
by
human
being
(sign
form/pick
goods
n
Computer
data Store
0
· A/c/m Manual file [A
=
alphabetical ,
C
=
chronological
· N = Numerical)
A
P
.
On
page
connector
Must
duplicate
symbol
before
A
Clerk
Computer
Manager
A
~
V
A
PR2/A
q
off
page
connector
Clerk Clerk
I
Pg//A
V
V
P92/A 1
page
> Draw with
grey
Test
yourself page
Cerase when done)
. Process done
by
human
being
:
Off-page connector
2 .
Process done
by
computer
:
16
. Data received via telecomm
L
3
. Manual
keying
4 .
Manual
scanning
5
. Start/end/ext. entities
(
- Internal entities
Entity
7
.
Goods
Paper
documents
Remarks
10
. Batch total BT
.
Computer
screen
display
Computer
data store
13 .
Manual file Call
annotations
14 .
On-page
connector
A
Topic
49 : Database
Design
[1]
mostly
FC
1 Database
Management
~ Involves the
storage
,
organization
,
retrieval & maintenance of
data
Keeping
the data
you get
PROPERLY
·
Non-physical
(theft ;
unauthorised use)
& costs I baddata
management
( more time/effort to maintain/retrieve
:
costs
- Traditional Approach
vs Database
approach
V
v
Eacsyste m manage
Each
system
store
data in
centralised
its own data in
danbuindependen m separate files
~
W
Multiple
programs
Same data stored
in more than
1
place
use data
concurrently
Benefits Brief[inFC]
↓ labord maint cost
,
data independence
,
Xdata
redundancy
.
BUT not
necessarily
more
private/secure
ALLEGEs
in ONE BASKET
4 .
Limitations
Brief [inFC]
Database
Management
System
Concurrency
issues Clock
when other user
updating)
,
no
processing
occur across
organisation
5
.
Coding
Data
> CODES
used to stordata (shorthand label
to
replace
long
description
:
M/F)
Sequential
Staff
ID number
, "Quene"
ticket
,
so number
Numbers in
chronological Sequence
~ Limited
flexibility
(deletion
) unused number ;
telluty
about
object
attributes)
2 Block
Coding
~
Group
of
numbers dedicated to a
particular
characteristic
E
g
Assets
200-
Liabilities & within each block
,
code
may
be
assigned
to individual items
110 CA
ill
Cash
) 112 Inventory
3
Significant
Digit
Coding
Assign meaning
to
specific
digits
(ID
codes)
E.
y
.
162174389
Product
Warehouse
location
W
gro
finished
unique
item number
product
Or
component
Hierarchical Data
Coding
>
Type
of
SDC
where numbers
are ordered
in
a DESCENDING
order where each successive rank is a subset
of rank above it
.
subset of subset of
L
Staff
: xxx)
YYY
222
Div
Deptin
State
identifier
Postal Code
: mm unnu
Sector code
Deliving
Pata
house/building)
5
Mnemonic
Data
Coding
Mix
alphabets
numbers
[ACCTIOI
; ACCT221]
- What data to
capture
s Need
to
balance benefit
of
providing
information vs
cost to
captured
store data.
TLDR
; store
only
Melevant data
4
Ws to
capture
in
every
business event :
1 What
is the event
? Whatusoures
being exchanged
?
- who are
agents
involved?
I can
be a
computer
terminal
Where is the location
of the event? Where
are the
resources before d
after event?
Where are
the
agents
in the event
?
4
. When is the event ,
INCLUDING future
exchange
of resources
arising
from
the event
How
are data stored
Stored in 20
tables
[datatables/files/stores
Database
: Set
of related data tables
Insert
Anomaly
~ You
put
all
4Ws into I
table
then
a new product
is made
.
~
Need
to put new
product
in 1 table but
all the other attributes
will be empty
~
Resulting
in no
pkey
and
empty
cells
.
[blank]
15. Delete
Anomaly
~ I recorded
attribute is cancelled
,
so
you
need
to
delete
record
.
BUT
since
all in
table >
deleling
that
you'll
remove
other important ,
still
existing
attributes
.
Relational Database
~
ONE
Single
table
= anomalies
.
So
you
need
to normalize table
by storing
data in more than I table
.
Relational
database :
set of
normalized tables that are
free from anomalies
.
Must
satisfy
rules
:
Entity Integrity
Rule
(ply
is
uniquely
identifier >
NO
transitive/partial dependency
2
Referential
Integrity
Rule
(tables
linked
by
foreign
keys
. No
transitive
dependency
Having
attributes
in
a table
that
is not identified
by
primary
key
I
so
if
Many
order
2 >
her name
put
in
twice .
E.
g
. pkey
:
order
number. but another
attribute in Sametable
(customer
name)
identified
by
cust no ,
not
play
.
Issues
: 1
Dataredundancy/duplication
2
Update
anomaly
3
Insert/ Addition
anomaly
4
Delete
anomaly
Cust name require
add new justwo any delete
Many
>
lose order
changes
in
more order Cho
play
data
than I
18
. No
partial
dependency
>
Issue
Stems from
COMPOSITE PKEY
~
When I attribute is
only
described
by
part
of
composite p-key
(not
full)
E.
g.
Order no
no
:
Okey
Product
desc
identified
by
product
no
only
Issues
: 1 Data
redundancy
2
Update
anomaly
3 Insert/addition
anomaly
4 Deletion
anomaly
* RMB
: Data redundancies
I result in anomalies (be
duplicates)
19
. To
solve anomalies
:
Break
up
table into
Many
NORMALIZED tables
No transitive/partial
dependency
THEN
:
Use
foreign
keys
to
link normalized tables
[Foreign
my
,
primary
key
Composite
play
I can
be
broken
down
into
foreign myd
linked? Seeslide
20. Benefits of
Relational Database
1
No
data
redundancy/update anomaly
(change
only
in
Iplaa)
No insert
anomaly
(can
add in I table even
if no
entry
for another
3 No delete
anomaly (deleting
I will
not cause dot a
loss
for
previous
entries
Topic
5
: Internal Control and Enterprise
Risk
Management
[Watch video
make
notes]
1
Fraudtriangle
(factors that cause frauds to
be committed)
Deliberate act ,
leading
to
unfair/unlawfulgain
[misappropriation
(theft/misuse) of assets
, Corruption
,
fraudulent
fin
statements]
intent to deceive
2
3
rationalization
Internal Controls breaks
opportunities
for fraud
↓ opportunity
Fraud
"not
doing anything g
,
a &
internal
Controls
pressure
I
reduce (financial/emotional /
lifestyle)
opportunities
for fraud
2. COSO Internal Controls
Framework
~
committee of
sponsoring
organization
[prevent
fraudent
financial
reporting
a
Objectives
of
Internal Controls
[what
you
want to achieve]
Operations
Reporting
Compliance
effective reliable
laws
regulations
and efficient
"reasonable" assurance ,
not 100
%
b.
Components
for
Strong
Internal Controls
Order matters (foundation)
↓ Control Environment [ethisal
values
,
standards
,
structures and
processes
, leaders
acting
ethically)
Loss
- Risk Assessment
[identifying
analyzing
threats
to
orgobj)
severity
impact Avoid
WOrK
E .
g.
Separation
of duties
together
L
3 .
Control Activities
[response
to
risk assessment actions to
mitigate
risks)
Accept
to
probability
3
probability
of
risk
happening
4
. Information and Communication
[infoof Control
activities
should be communicated
(ppI
will
then know now to adhere to
it]
Monitoring
Activities
[monitor
internal
control activities)
Control Activities
Inherent risk :
probability
of risk
happening
w/ no control
activity
Residual risk :
Probability
of risk
happening
after control
activity
Preventive
[Separation
of
duty)
Detective [Jobrotation]
Corrective
[Programmed
edit
check)
C
.
Responsibility
across
all
organizational
levels
i
.
Entity
level
Responsibility
is shand
ii
. Division
across the
organization
organisation
j
iii .
Operating
Unit
structure
ir.
Function
incompetent top
manager
....
: Internal controls
,
ERM
,[Corporate
governance
must be
good)
[if not
,
even
multiple
control activities
won't
help
Limitations
of
ERM &
internal
controls : 1
subject
to human error
2
beyond organisational
control
In-class
content
from here onwards
(except
the control
plans
itself
Input integrity
(and how a
lack of it
will affect
quality
of
output
of a
system/process)
Garbage
in
put
Process
Garbage
Out
No
input
integrity ~
informational
(mistakes ,
fraudulent data)
poor
process
Curt efficient
,
operational
goals
failure to
detect
mistake or
fraud)
For
input
integrity
,
data must
be:
9. Valid (IV)
not
fictitious/
fraudulent ,
from authorised
transactions
> non-existent
purchases
about
validity
of
source Cunauthorised
( not
just
about
mistains
b.
Accurate (IA)
data
Cany
mistakes)
(key-
in
wrong
&
~
IF
got
transaction
but mistains
V
If whole transaction missed
out
c.
Complete
all
events/objects
recorded
(any
omissions) (miss out whole transaction
may
not be done at same time
4
. Modes
of
Processing
Business event occurs s ( business event recorded
, master
data
is
updated
>
reports
are
generated
. Batch
processing
:
Event data
accumulated ,
then recorded and
processed
(at
later time)
- Online
processing
: Event
data recorded
directly
in
computer
when event
happens ,
but
data
proussed
at a later time
(recorded
first
,
processed
later)
Online real-time
processing
: Event data recorded
directly
into
computer
when event
happens
.
Data
immediately
processed
and master file
updated
.
reliability ,
timeliness of
crecord
process
immediately
[Affects
output.
Internal controls
must be
relevant to mode of
proussing
to ensure data t
Update
integrity
Why
mode
of
processing
matters
:
[
Check what
internal controls
are needed
IMPT :
If no time
lay
between
key-in
and
update
to master
data
store
Conline real
time
*online real
time .
key-in
,
immediately
Means that
input
to AR
master
Comes from
key
only
.
update
master
W Store.
Only
need to ensure
Sufficient control
input
to ensure data
keyed
in
is IA ,
IV and
K .
No had for
S
additional
update
controls
.
In
contrast
... If online/batch
processing
...
myriad
of
issues
E
.
g.
Conline)
:
Computer
Fin
Clerk
master file
recorded
end of
S
month Only
at end
S
of Month
Stilhar
as
W
using
wry &
variation
offile
(timelag)
How
to use Control Matrix
to evaluate a
System
1
Complete
headings
of Control matrix
Identify
mode
of
processing
Anticipate
what
may go
wrong
Crisk assessment) and recommend Control
plans
/ Control activities
to
mitigate
risks.
4
.
Match control plans
and control
goals
5
Annotate flowchart to indicate if control
plan
is
present/missing
in
system
.
Describe
Control
plans
How it works in
system
of interest
1
How control
plans
work
to achieve
control
goals
.
Tip
: Where
applicable
, begin
by explaining
how control plans ensure IV/IA/12 before
linking
control plans
to
operations process
goals
.
[input
integrity
the start of
everything
7. Look/Assess
Overall control matrix
. Risk Assessment and
Control Plans /
Activities to
mitigate
risk
Anticipate
what
may
go wrong
Control
plans
Mistake
when
keying
in
RAs
Computer
verifies
reasonableness
of
amount entered
(4)
.
Match control
plans
Control
goals
Px : Present Control
plans
Mx
:
Missing
control
plans (but
if
present
will achieve control
goal)
How to describe control
plans
P
:
1
Description
2 Ensure
(A/IV/IC
: How ... ·
first
control
3 Ensure
Security
: How
goals [
Ensure
efficient
employment
ofUsources :
How ...
)
How
cont
plans
link to
control
gol
as
Or
effectiveness
M2 same format but
1
This
is a missing
Controlas"
...
"
Which IV/IA/I or control
goal
you're
talking
about
depends
on control
plan
.
Need
to describe HOW
1
Ensure
(V/IA/IC
Ensure
effectiveness
/efficience/security
&
depending
on control
plan ,
may
only
talk about one
. Assess Overall
control
matrix
Rub
they
cost
money
.
(slowdown
efficiency)
... but if no control
plan,
no
input
integrity
.
Control
plan
Control
Goal
I
must
balance.
A
~
B ~
I
Too
many
plans
for same
goal
.
E
~
redundant
