Flowcharts can impact the design, implementation and evaluation of an accounting

Question

Flowcharts can impact the design, implementation and evaluation of an accounting information system. Determine whether each statement below is: (i) always true, (ii) sometimes true or (iii) never true.

a. Accounting information systems have five generic elements; a flowchart can be an example of at least one of the elements.
b. All aspects of an AIS should always be represented in a single flowchart of no more than three pages.
c. Flowcharts are required if a company wants to use the COSO internal control framework.
d. Flowcharts are useful to auditors.
e. Flowcharts can be used as part of a business process management project for an AIS.

Explanation / Answer

a.

Always true.

Reason: Through the one element it will help to understand the evaluation of the accounting process in the information system.

b.

Always true.

Reason: It should come under one page while exploring the flowchart for the implementation purpose of the accounting system.

c.

Always true.

Reason: It is true and also required for designed internal control framework.

d.

Never true.

Reason: Auditing needs to check the sequences or steps of values used. The validity of the statements are checked but flowchart somewhat can only tell the process that will conclude the step by step areas which needs to be checked. But auditing is something different than flowcharts.

e.

Always true.

Reason: For many project purposes for AIS it is used to generate flowchart to ease the work process and its flow of standard in work delivery.  

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