All of the following are guidelines for grouping activities in a level 0 dfd except:

Chapter 4—Documenting Information Systems TRUE/FALSE 1. Flowcharts are commonly used in financial audits, business process reengineering and security review engagements. ANS: T 2. Data flow diagrams portray a business processes’ activities, stores of data, and flows of data among those elements. ANS: T 3. Data flow diagrams present a comprehensive picture of the management, operations, information systems and process controls embodied in business processes. ANS: F 4. A data flow diagram is a graphical representation of a system, which depicts the system’s components, data flows and the sources, destinations and storage of data. ANS: T 5. System flowcharts use only four symbols. ANS: F 6. Systems documentation is used to understand, explain, evaluate, and improve complex business processes, information systems, and internal controls. ANS: T 7. In a data flow diagram, a bubble symbol shown below depicts an entity or a process within which incoming data flows are transformed into outgoing data flows.

ANS: T 8. The advantage of a physical data flow diagram versus a logical data flow diagram is that we can concentrate on what activities a system is performing without having to specify how, where or by whom.. ANS: F

9. In a data flow diagram, a square represents an internal entity.

ANS: F 10. In a data flow diagram, two parallel lines represent the data store symbol.

ANS: T 11. The following symbol represents general purpose input-output.

ANS: F 12. The following symbol represents a computer process.

ANS: T 13. The following symbol represents a manual process

ANS: T 14. The following symbol represents a disk

ANS: F 15. The following symbol represents a paper file.

ANS: T 16. The following symbol represents a document.

ANS: F 17. In a data flow diagram, an external entity symbol portrays a source or a destination of data outside the system. ANS: T 18. A context diagram is a top-level diagram of a system that depicts the system and all its activities as a single bubble. ANS: T 19. Internal entities are those entities inside the system that send data to, or receive data from, the system. ANS: F 20. Internal entities are those persons, places, or things outside our system that send data to, or receive data from, our system. ANS: F 21. An external entity is a person, place, or thing within the system that transforms data. ANS: F 22. A physical data flow diagram uses bubbles to specify where, how, and by whom a system's processes are accomplished. ANS: T 23. When the context diagram and the level 0 diagram have equivalent external data flows, the DFDs are said to be balanced. ANS: T 24. The successive subdivision, or exploding, of logical data flow diagrams is called bottom up partitioning.

ANS: F 25. A systems flowchart is a graphical representation of both the physical and logical features of an information system. ANS: T 26. Processes that handle other-than-normal situations are called exception routines. ANS: T 27. Information processing activities including retrieving data from a file, transforming data, or filing data. ANS: T 28. An acceptance stub is a data flow that leaves a bubble but does not go to any other bubble or file and indicates processing that is performed in other than normal situations. ANS: F 29. In an enterprise system, we would have one data store/disk symbol that would be labeled “enterprise database” instead of two or more data store symbols. ANS: T 30. When we convert to an enterprise system, reengineered processes often result from the installation and can cause changes throughout the systems flowcharts. ANS: T MULTIPLE CHOICE 1. A symbol used in data flow diagrams to depict an entity or process within which incoming data flows are transformed into outgoing data flows is a(n): a. data flow symbol b. external entity symbol c. bubble symbol d. file symbol ANS: C 2. A data flow diagram could contain each of the following symbols except: a. a bubble or circle b. an octagon c. a square d. a curved line with arrow head ANS: B 3. Which of the following data flow diagram symbols is represented by two parallel lines? a. data flow symbol

b. external entity symbol c. sink symbol d. data store symbol ANS: D 4. Which data flow diagram symbol portrays a source or destination of data outside the system? a. data flow symbol b. external entity symbol c. bubble symbol d. file symbol ANS: B 5. Which data flow diagram symbol is usually portrayed with a circle? a. data flow b. data store c. external entity d. process bubble ANS: D 6. Which data flow diagram symbol is usually portrayed with a square? a. data flow b. data store c. external entity d. process bubble ANS: C 7. Which data flow diagram symbol is usually portrayed with an arrow? a. data flow b. data store c. external entity d. process bubble ANS: A 8. In data flow diagrams describing the accounting information system of a manufacturing company, the company’s bank is most likely represented as a(n): a. data flow b. data store c. external entity d. process bubble ANS: C 9. In data flow diagrams describing the accounting information system of a consulting firm, a customer is most likely represented as a(n): a. data flow b. data store c. external entity d. process bubble ANS: C 10. In data flow diagrams describing the accounting information system of a medical practice, a patient is most likely represented as a(n): a. data flow

b. data store c. external entity d. process bubble ANS: C

11. Those entities which perform no information processing activities for the system are called: a. external entities b. internal entities c. boundary entities d. environmental entities ANS: A 12. Which symbol can be either an entity or a process depending on the type of DFD? a. bubble symbol b. external entity symbol c. data flow symbol d. file symbol ANS: A 13. Which of the following is the least detailed of the data flow diagrams? a. logical data flow diagram b. systems flowchart c. context diagram d. physical data flow diagram ANS: C 14. In a physical data flow diagram, this is something within the system that transforms data. a. data flow b. data store c. external entity d. internal entity ANS: D 15. In a physical data flow diagram, a bubble or circle could be used to specify each of the following except: a. where a process is performed b. how a process is performed c. by whom a process is performed d. what process is performed ANS: D

16. Which type of data flow diagram specifies where, how, and by whom a system's processes are performed? a. context diagram b. physical data flow diagram c. logical data flow diagram d. systems flowchart ANS: B 17. A person, place, or thing within a system that transforms data is called: a. external entity b. relevant environment c. internal entity d. boundary ANS: C 18. Which data flow diagram shows what activities the system is performing without having to specify how, where, or by whom the activities are accomplished? a. context diagram b. physical data flow diagram c. systems flowchart d. logical data flow diagram ANS: D 19. Data flow labels in context diagrams usually describe: a. what the data are (physical labels) b. the nature of the data (logical labels) c. to whom the data are being transmitted (identity labels) d. where the data are being sent (directional labels) ANS: B 20. In which of the following data flow diagrams does the bubble symbol represent a process and not the entire system? a. context diagram b. physical data flow diagram c. logical data flow diagram d. systems flowchart ANS: C 21. In a logical data flow diagram for a cash receipts system, each of the following labels might appear in a bubble except: a. cashier b. capture cash receipts c. endorse checks d. update master files ANS: A

22. The data flows in a logical flow diagram show: a. how the data are transmitted b. where the data are transmitted c. the nature of the data being transmitted d. who receives the transmitted data ANS: C 23. When two data flow diagrams have equivalent external data flows, we say that the two data flow diagrams are: a. congruent b. similar c. balanced d. equal ANS: C 24. A process in which successive layers of data flow diagrams are constructed by "exploding" the bubbles on a less detailed DFD to show more detailed data flows is called: a. top-down partitioning b. serial expansion c. balanced construction d. expanded data flows ANS: A 25. Which of the following statements related to the construction of data flow diagrams is false? a. The level 0 diagram is the next level down from the context diagram. b. If the level 0 diagram has one arrow going into bubble number 1.0 and two arrows leaving bubble number 1.0, then diagram 1.0 will show one arrow entering and two arrows leaving. c. Sources and destinations are depicted by parallel horizontal lines, between which the name of the entity is shown. d. Arrows represent a pathway for data. ANS: C 26. A systems flowchart varies from a data flow diagram because it: a. only represents the information system b. only represents the operations system c. only represents the management system d. represents the management system, the operations system, and the information system ANS: D 27. Information processing activities include: a. only automated activities b. activities that retrieve, transform, and file data c. the sending of data between entities d. operational activities ANS: B

28. Why do auditors and systems analysts use systems documentation? a. to understand, explain, and improve complex systems b. only to provide justification to management for systems investments c. to reduce the number and amount of external entities d. to eliminate evidence to be collected ANS: A 29. On a systems flowchart, computer processing is represented by a: a. square b. trapezoid c. rectangle d. parallelogram ANS: C 30. On a systems flowchart, a paper file is represented by a: a. triangle b. cylinder c. rectangle d. pentagon ANS: A 31. On a systems flowchart, a solid line with an arrow indicates a(n): a. batch total b. telecommunications link c. off-page connector d. logical flow ANS: D 32. Which of the following systems flowcharting symbol descriptions is incorrect?

a. b. c. d.

disk computer process manual process display

ANS: C

33. Which of the following systems flowcharting symbols descriptions is incorrect?

a. b. c. d.

tape on-page connector start/stop paper file

ANS: D 34. Which of the following systems flowcharting symbols descriptions is incorrect?

a. b. c. d.

general purpose input-output manual process multiple-page document punched card

ANS: D 35. How many circles (bubbles) are included in a correctly drawn context diagram? a. zero b. one c. three d. more than one but no more than are necessary to model the system ANS: B 36. An information processing activity could be any of the following except: a. sending or receiving data b. preparing documents c. data entry d. verifying data ANS: A

37. In drawing a context diagram, we should include: a. only exception routines b. only error routines c. only normal processing routines d. only normal processing and exception routines ANS: C 38. To make a logical data flow diagram readable, how many bubbles should be used? a. one to three b. five to seven c. eight to ten d. as many as needed but no more than ten ANS: B 39. On a logical data flow diagram, data flows: a. always go from a higher-numbered to a lower-numbered bubble b. never go from a higher-numbered to a lower-numbered bubble c. can go in either direction as needed d. must go from a bubble to a box ANS: B 40. All of the following are "guidelines" for grouping activities in a level 0 DFD except: a. group activities if they occur in the same place and at the same time b. group activities if they occur at different times in the same place c. group activities if they occur at the same time but in different places d. group activities that seem to be logically related ANS: B 41. When a transaction cannot be processed in a routine fashion because of an error or other processing problems, the transaction must be handled by a(n): a. rejection routine b. change report c. exception and summary report d. exception routine ANS: D 42. The following is a jumbled list of the activities suggested in this text for drafting data flow diagrams for an existing system: I. II. III. IV. V.

Prepare a table of entities and activities. Prepare a chronologically sorted table of entities and activities. Draw a physical data flow diagram. Draw a logical data flow diagram. Draw a context diagram.

The best sequence for undertaking these activities is: a. I, II, V, III, IV b. I, V, III, II, IV c. II, I, III, V, IV d. II, IV, III, I, V ANS: B

43. Examine the following context diagram and the related level 0 logical data flow diagram. Which of the following statements is true?

a. b. c. d.

The data flow diagrams are prepared correctly. A context diagram must have a least two external entities. The logical data flow diagrams are not balanced. The logical data flow diagram must have 5 to 7 processes.

ANS: C 44. Which statement concerning the following 1.0 data flow diagram is true?

a. b. c. d.

The data flow diagram follows DFD guidelines. An arrow should never leave a bubble with no destination. Data should only flow from a data store. Level 1.0 diagrams should show the external entities.

ANS: A

45. Which of the following segments violates guidelines for creating systems flowcharts?

a. b. c. d.

Segment a. Segment b. Segment c. Segment d.

ANS: A 46. The following systems flowchart describes how a data entry clerk key enters data on a source document into business event data. Which statement describes whether the systems flowchart was created properly?

a. b. c. d.

The systems flowchart was created properly. The arrow between the computer process and the data store should be bi-directional. The computer process should be shown in the computer column. The second symbol in the data entry clerk column should be a square.

ANS: C

47. The following systems flowchart describes how a manager queries a data store to view information on a computer screen. Which statement describes whether the systems flowchart was created properly?

a. The systems flowchart was created properly. b. Only a single direction arrow should flow from the data store symbol to the process query symbol. c. The input query symbol should be a square. d. The input query symbol should be in the computer column. ANS: B 48. The following systems flowchart describes how a user enters business event data from a source document to update master file data. Which statement describes whether the systems flowchart was created properly?

a. b. c. d.

The systems flowchart was created properly. Only a single disk must be used to represent the master data. The every day symbol should be connected with a solid line. The data flows should move from the left to right.

ANS: D 49. The flow of processes on a system flowchart is from: a. left to right b. right to left c. bottom to top d. either a. or b. ANS: A

50. Which of these represent a comprehensive picture of management, operations and information systems? a. entity relationship diagram b. logical data flow diagram c. physical data flow diagram d. systems flowchart ANS: D COMPLETION 1. In a data flow diagram, a(n) ____________________ symbol depicts an entity or a process within which incoming data flows are transformed into outgoing data flows. ANS: bubble 2. In a data flow diagram, a(n) ____________________ symbol represents a pathway for data. ANS: data flow 3. Data store symbols are represented by ______________________________________. ANS: two horizontal parallel lines

4. In a data flow diagram, a(n) _________________________ symbol portrays a source or a destination of data outside the system. ANS: external entity 5. A(n) ______________________________ is the top-level diagram in a series of ____________________ diagrams representing an information system, and it shows the flows into and out of the system of interest and into and out of external entities. ANS: context diagram, data flow 6. A ______________________________ is the least detailed diagram of an information system. ANS: context diagram 7. ______________________________ are those persons, places, or things outside our system that send data to, or receive data from, our system. ANS: External entities 8. A(n) _________________________ is a person, place, or thing within the system that transforms data. ANS: internal entity

9. A(n) _____________________________________________ uses specifies where, how, and by whom a system's activities are accomplished. ANS: physical data flow diagram 10. A(n) ________________________________________ shows what activities the system is doing without specifying how, where or by whom the activities are accomplished. ANS: logical data flow diagram 11. A(n) ____________________ data flow diagram depicts what activities the system performs rather than how, where, or by whom they are performed. ANS: logical 12. When the context diagram and the level 0 diagram reflect the equivalent external data flows, the two diagrams are said to be ____________________. ANS: balanced 13. The successive subdividing, or exploding, of logical data flow diagrams is called ___________________________________. ANS: top-down partitioning 14. A(n) ___________________________________ is a graphical representation of both the physical and logical features of an information system. ANS: systems flowchart 15. A(n) ____________________ is any action being performed by an internal or external entity. ANS: activity 16. ______________________________ activities include retrieving data from storage, transforming data, or filing data. ANS: Information processing 17. Processes that handle other-than-normal situations are called ____________________ or ____________________ routines. ANS: exception, error 18. A(n) _________________________ is a data flow that leaves a bubble but does not go to any other bubble or data store. ANS: reject stub 19. In a(n) ____________________ system, we use a central database for the business processes. ANS: enterprise

PROBLEMS 1. Figure TB-4.1 is a "generic" level 0 data flow diagram, taken from Figure 4.5 in the text. Required: Using good data flow diagram construction techniques draw a diagram to explode bubble 3.0 to its next lower level. Diagram 3.0 should contain three processes, appropriately numbered, and should contain the following data flows in addition to those in the level 0 diagram (see NOTE): a. b. c.

Flow H runs from the first process to the second. Flow I runs from the first process to the third. Flows J and K run from the second process to the third.

NOTE: Assume that the flows shown in the level 0 diagram affect diagram 3.0 as follows: 1. 2. 3.

Flow D runs to the first process in diagram 3.0. Flow B runs from the third process in diagram 3.0. The data flow running from the data store runs to the second process in diagram 3.0.

ANS:

2. Figure TB-4.3 shows a context diagram a cash sales system. The diagram intentionally violates several of the guidelines and other techniques presented in the text for drawing data flow diagram. Required: Identify as many of the errors in data flow diagram construction as you can. In the diagram, place consecutive numbers (each in a circle) next to the points at which the errors exist. On your solution sheet, list the numbers and write a one- to two-sentence description of each error and what the correct procedure should be. Error 1 is provided as an example of how to construct the solution. Error 1

Error Description Data flows should not connect two external entities. Depending on the extent of the system being analyzed, either the mail room or the bank entity should be eliminated or documented within the system.

ANS: INSTRUCTOR NOTE: You may wish to modify the requirement in one of two ways: (1) Have the students redraw the diagrams instead of describing the errors or (2) limit the number of errors required in the solution to something less than the entire population. (Figure TB-4.4, an annotated version of Figure TB-4.3, shows the location of each error.) Error 2 3 4 5

Error Description When multiple entities operate identically, one box can represent all. Eliminate all but one customer box and label it "Cash customer." A context diagram should have only one bubble. Since the problem states that we are analyzing a cash sales system, eliminate this bubble. In the context diagram and level 0 diagram, logical rather than physical labels should be used. Eliminate the reference to Form S92. The symbols used for the sales transaction event data file is incorrect. In a DFD, the file symbol is a pair of parallel, horizontal lines.

3. Figure TB-4.5 shows a level 0 logical data flow diagram for a billing system. The logical data flow diagram intentionally violates several of the guidelines and other techniques presented in the text for drawing data flow diagram. Required: Identify as many of the errors in the logical data flow diagram construction as you can. In the logical data flow diagram, place consecutive numbers (each in a circle) next to the points at which the errors exist. On your solution sheet, list the numbers and write a one- to two-sentence description of each error and what the correct procedure should be. If an error occurs in more than one place, mark each occurrence of the error. Error 1 is provided as an example of how to construct the solution. Error 1

Error Description A data flow to an external entity should describe the document. After recording the sale, a total of the sales and the sales invoice (copy 3) may be sent to the accounts receivable department.

ANS: INSTRUCTOR NOTE: You may wish to modify the requirement in one of two ways: (1) Have the students redraw the diagram instead of describing the errors or (2) limit the number of errors required in the solution to something less than the entire population. (Figure TB-4.6, an annotated version of the logical data flow diagram in Figure TB-4.5, shows the location of each error.)

Error 2 3

4

5 6 7 8

Error Description The bubbles in the level 0 data flow diagram are numbered incorrectly. They should be numbered 1.0, 2.0, and 3.0. The label in the first bubble is a noun, referring to a physical entity. In a logical DFD, the process labels should contain verbs describing what is done. Change the label to say something like "Prepare sales invoice." In a logical data flow diagram, there can be no backward flows. Either the recorded sales invoice flow should be eliminated or it should go to a subsequent process bubble for action, or to a file of sales invoices. The symbols used for the price list, and inventory master data are incorrect. In a data flow diagram, the file symbol is a pair of parallel, horizontal lines. Reject stubs should appear only in lower-level data flow diagrams. Eliminate the reject stub from the level 0 diagram. The data flow should be from the 1.0 bubble to the customer Instructor Note: You could also include number 8 at three points. Remove “original”, “copy 2”, and “copy 3” from the sales invoice labels since they are physical details and do not normally belong in a logical data flow diagram.

4. Figure TB-4.7 shows several systems flowchart routines that intentionally violate good flowchart construction procedures. Required: Redraw each of the routines so that they conform to the guidelines and other techniques presented in the text for drawing systems flowcharts. HINT: Be alert to the description of each routine; the descriptions should govern your solution.

ANS: INSTRUCTOR NOTE: You may wish to modify the requirement in one of two ways: (1) Have the students describe the violations instead of redrawing the flowchart segments or (2) limit the number of drawings required in the solution to only certain of the routines in Figure TB-4.7

5. The following narrative describes the order entry process at Adams, Inc.: Adams, Inc. customers mail their orders to the Adams customer service center where clerks open the orders and review them for accuracy. The clerks then key orders into the computer. As the clerk is entering data the computer populates the order input screen with data from the applicable customer and inventory master data. The computer displays the completed order and the clerk reviews the order (assume there are no discrepancies) and then accepts the order (selects the “save” icon on the input screen). The computer then creates a sales order master record, updates the inventory master data to allocate inventory to the sales order, prints a picking ticket in the warehouse, and displays the sales order number to the customer service center clerk. The clerk then reads this number to the customer. Required: a. b. c.

Prepare a table of entities and activities. Prepare a context diagram. Prepare a physical data flow diagram.

ANS: INSTRUCTOR NOTE: This problem requires students to prepare selected components of systems documentation. In contrast, Instructors wishing to focus on the creation of data flow diagrams can provide their students with the solution to part a. a. Table of Entities and Activities Entities

Para

Customer

1

1. Mail orders

Customer service center (clerks)

1 1 1

2. Open orders 3. Review orders 4. Enter (key) orders into computer

Computer

1 1

5. Populate inputs with data from customer and inventory master data 6. Display order

Customer service center (clerks)

1 1

7. Review order 8. Accept order

Computer

1 1 1 1

9. Create sales order master record 10. Update inventory master data to allocate inventory 11. Print picking ticket in the warehouse 11. Display sales order number

Customer service center (clerks)

1

12. Read sales order number to customer

Warehouse

1

b. Context diagram.

c. Physical DFD

Activities

6. Adams, Inc. customers mail their orders to the Adams customer service center where clerks open the orders and review them for accuracy. The clerks then key orders into the computer. As the clerk is entering data the computer populates the order input screen with data from the applicable customer and inventory master data. The computer displays the completed order and the clerk reviews the order (assume there are no discrepancies) and then accepts the order (selects the “save” icon on the input screen). The computer then creates a sales order master record, updates the inventory master data to allocate inventory to the sales order, prints a picking ticket in the warehouse, and displays the sales order number to the customer service center clerk. The clerk then reads this number to the customer. Required: a.

b. c.

Prepare an annotated table of entities and activities. Indicate on this table the groupings-bubble numbers and bubble titles--to be used in preparing the level 0 logical data flow diagram. Prepare a logical data flow diagram (level 0 only). The context diagram of this billing system shows two external entities: customers and the shipping department. Prepare a systems flowchart.

ANS: INSTRUCTOR NOTE: This problem requires students to prepare selected components of systems documentation. Instructors wishing their students to prepare all systems documentation should use Problems 5 & 6. a. Table of Entities and Activities (annotated) Entities Customer service center (clerks)

Computer

Para

Activities

1 1

2. Open orders 3. Review orders

1

4. Enter (keys) orders into computer

1

5. Populate inputs with data from

Processes

1.0 Enter customer order

1

customer and inventory master data 6. Display order

Customer service center (clerks)

1 1

7. Review order 8. Accept order

Computer

1 1

9. Create sales order master record 10. Update inventory master data to allocate inventory 11. Print picking ticket in the warehouse 11. Display sales order number

1 1 Customer service center (clerks)

b. Logical DFD.

12. Read sales order number to customer

2.0 Verify and accept customer order

3.0 Record customer order

c. Systems flowchart

7. The figure below contains 14 symbols used in constructing data flow diagrams or system flowcharts. Each symbol has been assigned a capital letter (A through N) for identification in this problem. The following is a list of 14 data flow diagram or flowcharting symbols: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

Data store (in a data flow diagram) Entity or process (in a data flow diagram) External entity (in a data flow diagram) Document Manual keying Computer process Manual process Display Disk Paper Off-page connector Start/stop Annotation Batch total

Required: Match each symbol to its corresponding description by writing the description number below the each symbol.

ANS: A. B. C. D. E. F. G. H. I. J.

(7) (8) (6) (10) (3) (14) (1) (12) (2) (11)

K. L. M. N.

(13) (5) (9) (4)

8. For each of the following, indicate whether it is a characteristic of a A. physical data flow diagram B. logical data flow diagram C. systems flowchart 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. ANS: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

A graphical representation of a system showing the system’s processes, data stores, and the flows of data into and out of the processes and data stores. A logical and physical rendering of the who, what, how, and where of information and operations processes. Depicts a system’s infrastructure. Depicts the sequence of activities performed as the business events flow through the process. Includes the operations process and management context for a system. Portrays a system’s activities. Presents a logical and physical rendering of the who, what, how, and where of information and operations processes. Processes are labeled with nouns. Processes are labeled with verbs. Provides a complete picture of a system by combining the physical and logical aspects of the system. Represents what activities the system is performing, but not how, where or by whom. Specifies where, how, and by whom a system’s processes are accomplished.

B C C B and C NOTE: Both a logical DFD and a systems flowchart depict the sequence of activities through a process. C B C A B C B A

ESSAY 1. Compare and contrast the description and use of physical data flow diagrams and logical data flow diagrams. ANS: A physical data flow diagram is a graphical representation of a system showing the system’s internal and external entities, and the flows of data into and out of these entities. Physical data flow diagrams specify where, how, and by whom a system’s processes are accomplished. A physical data flow diagram does not tell us what activities are being accomplished. A logical data flow diagram is a graphical representation of a system showing the system’s processes, data stores, and the flows of data into and out of the processes and data stores. Logical data flow diagrams are used to document information systems because they represent the logical nature of a system—what activities the system is performing—without having to specify how, where, or by whom the activities are accomplished. The advantage of a logical DFD (versus a physical DFD) is that we can concentrate on the functions that a system performs.

What are the guidelines for drawing DFD?

What are the 4 elements of DFD?

What is a 0 level DFD?

What is DFD explain Level 0 and Level 1 DFD with suitable example?