An internal control flowchart shows functional areas to indicate the authorization of transactions, the custody of assets, and the recording of transactions. c. An internal control flowchart is prepared prior to preparing a system flowchart.
An entire software system is a collection of multiple programs. A program flowchart describes a single program. Before writing the program, it is a good practice to draw a flowchart and identify how to solve the task using that program. For example, assume that you need to create a program to find the area of a rectangle.
• Using an internal control questionnaire for reference while interviewing client personnel can guide the internal control documentation process. • The flowcharts can guide systems walk-through procedures designed to support information obtained from client interviews and to provide substantive evidence.
The flowchart minimizes the amount of narrative explanation and thereby achieves a condensation of presentation not possible in any other form. It gives both a bird’s-eye view of the system and an efficient documentation of the auditor’s testing of it.
The main difference between system flowchart and program flowchart is that a system flowchart represents an entire system while a program flowchart represents a single program. Software development is a complex task. It is not possible to write programs for the entire system directly. Therefore, it is necessary to model ...
What is a Flowchart. A flowchart is a diagram that represents the sequence of steps to solve a given problem. It is easier to learn and write than a regular programming language. Moreover, it helps to identify the required steps to accomplish a particular task. Figure 1: A Flowchart.
It also helps in preparing the required documents of the system. Furthermore, a system flowchart reflects the relationships between inputs, outputs and processes. Managers, business analysts, and Software Engineers use system flowchart to analyze and design the system.
It is not possible to write programs for the entire system directly. Therefore, it is necessary to model the system to get a better understanding of the system. Furthermore, there are different diagrams that help to understand the functionality of the system. One such diagram is a flowchart. It is a diagrammatic representation ...
The Rebirth of the Internal Control Flowchart. In 1966 , a book was published by two Canadian Chartered Accountants, Skinner and Anderson, entitled Analytical Auditing. The subtitle of the book was “An Outline of the Flow Chart Approach to Audits.".
While an auditor was required to understand the business and industry of a reporting entity, there was no requirement to understand, test or rely upon the entity’s internal control system. As a result, very little documentation of internal control was prepared by auditors.
• Flowcharts can now be created electronically using Word or Excel draw symbols or special software such as Visio.