ACCOUNTIN
G
INFORMATIO
N SYSTEM
AIS 21
• DOCUMENTATI
ON
• FLOWCHARTS
Documentation and flowcharts
In an Accounting Information System (AIS) are visual representations that
map out how financial data and transactions move through an organization.
They serve as blueprints for understanding, analyzing, and improving
accounting processes.
OBJECTIVES
1.Process Visualization: Clearly depict how transactions flow between departments
2.Audit & Compliance: Provide evidence for internal/external audits.
3.Error Detection: Identify bottlenecks or inefficiencies in workflows.
4.Training & Onboarding: Help new employees understand accounting procedures.
5.System Improvement: Support redesigns of outdated processes.
3 TYPES OF FLOWCHARTS
• Process Flowcharts- Tracks physical/electronic documents (e.g., purchase
orders).
Purchase Requisition → Manager Approval → PO Sent to Supplier → Goods Received
• System Flowcharts- Maps data flow between software/hardware.
POS System → Sales Database → AIS (GL Update) → Bank Integration
• Document Flowcharts- Details step-by-step transaction handling.
Customer Order → Credit Check → Inventory Deduction → Shipping → Invoice →
Payment → GL Update
Common Mistakes to Avoid
1.Missing Decision Points: Forgetting to handle "No" paths
⚬ Wrong: Approval process with no rejection path
2.Overcomplicating: Too many symbols in one chart
⚬ Solution: Break into sub-processes
3.Inconsistent Symbols: Using different shapes for same actions
⚬ Always use rectangles for processes
1. Document Flowcharts
How They Work:
Visualize the physical or electronic movement of documents
through an organization. They track who handles documents and
where they go.
Objectives:
• Identify inefficiencies in paper/electronic document flow
• Ensure proper authorization controls
• Maintain audit trails for compliance
• Reduce document loss/mishandling
Example: Purchase Order
Process
2. System Flowcharts
How They Work:
Map the electronic flow of data between systems, programs, and hardware components.
Objectives:
• Show integration between software modules
• Identify system vulnerabilities
• Plan IT infrastructure upgrades
• Ensure data integrity across platforms
Example: Payroll System
Integration
3. Process Flowcharts
How They Work:
Detail the step-by-step logic of a specific accounting procedure, including decisions and
exceptions.
Objectives:
• Standardize accounting procedures
• Train new staff efficiently
• Identify control weaknesses
• Automate manual processes
Example: Customer Credit
Approval
Document Flowchart:
A hospital tracks patient billing forms from admissions → insurance → accounting.
System Flowchart:
An e-commerce company maps how their POS system → inventory database →
QuickBooks.
Process Flowchart:
A bank details its loan approval steps from application → credit check → funding.
