Chapter 3 Homework Questions 1-3 & Pro.

6
1. A DFD is a representation of which of the following? a. relationship among modules, data, and programs of an AIS b. flow of data in an organization c. decision rules in a computer program d. computer hardware configuration

2. Documentation methods such as DFDs and flowcharts save both time and money, adding value to an organization. a. True b. False

3. Which of the following statements is false? a. Flowcharts make use of many symbols. b. A flowchart emphasizes the flow of documents or records containing data. c. DFDs help convey the timing of events. d. Both a and b are false. 6. As the internal auditor for No-Wear Products, you have been asked to document the Companys payroll processing system. Based on your documentation, No-Wear hopes to develop a plan for revising the current system to eliminate unnecessary delays in paycheck processing. The head payroll clerk explained the system: The payroll processing system at No-Wear Products is fairly simple. Time data are recorded in each department using time cards and clocks. It is annoying, however, when people forget to punch out at night, and we have to record their time by hand. At the end of the period, our payroll clerks enter the time card data into a payroll file for processing. Our clerks are pretty good-though I've had to make my share of corrections when they mess up the data entry. Before the payroll file is processed for the current period, human resources sends us personnel changes, such as increases in pay rates and new employees. Our clerks enter this information into the payroll file. Usually, when mistakes get back to us, it's because human resources is recording the wrong pay rate or an employee has left and the department forgets to remove the record. The data are processed and individual employee paychecks are generated. Several reports are generated for management-though I don't know what they do with them. In addition, the government requires regular federal and state withholding reports for tax purposes. Currently, the system generates these reports automatically, which is nice. a. Prepare a context diagram and level 0 DFD to document the payroll processing system at No-Wear Products. b. Prepare a document flowchart to document the payroll processing system at No-Wear Products.

Employee Time Card Data Operating Documents Employee Paychecks

Payroll Processing System

Internal Reports

Management

Human Resources Department Personnel Data Withholding Reports Governmental Agencies

Operating Departments

Time Card Data

Human Resources Department

Personnel Changes 1.0 Process Employee Timecards

2.0 Update Payroll File

Payroll File

3.0 Generate Paycheck Internal Reports Pay check Management

4.0 Generate Payroll Reports Withholding Reports

Employee

Governmental Agencies

No-Wear Products-Payroll
Employees in Functional Department Payroll

Time Card

Record Time Data

Record Time

Enter Time Data

Process Payroll Changes

Enter Payroll Changes

Completed Time Card

Completed Time Card

Payroll File

From Human Resource Dept N

Payroll Changes

Process Payroll, Prepare Checks and Reports

Paycheck

Employee

Management Report

Management

Federal Tax Report

Stat Tax Report

Goverrnment