Utilizing Flowcharts In IT Audits Of Vital Apps

A flowchart can be extremely helpful in auditing essential enterprise purposes and techniques such as business resource planning methods (ERP) and provider oriented architecture (SOA) techniques. As flowchart maker are worried with getting a clear comprehension of the pitfalls and controls in the engineering beneath overview. Flowcharts facilitate an correct assessment of an IT environment.

According to Wikipedia, the simple definition of a flowchart is a sort of diagram that signifies an algorithm or approach that exhibits information and its motion typically with arrows. The use of flowcharts is frequent in a lot of fields for analysis, design and style, documentation and method management.

Flowcharts are most helpful to visually screen business procedures and the supporting technological innovation. Auditors can target on distinct facets of data flows and infrastructure in these diagrams based on the assessment of dangers and controls.

Events that can be captured in a flowchart consist of info inputs from a file or databases, choice factors, rational processing and output to a file or report. Pitfalls and controls in a enterprise method can be documented visually and analyzed.

4 fundamental shapes are frequently utilised to create flowcharts. A sq. is utilized for a method (e.g. add, change, help save). A sq. with a wavy base is utilised for a document. A diamond is used for a determination position (e.g. yes/no, true/untrue). A sideways cylinder is used for info storage (e.g. database). These traditional styles had been initially set up by IBM and other pioneers of info technological innovation.

Extra designs include circles, ovals and rounded rectangles for the start and finish of a enterprise procedure. Arrows demonstrate 'flow control' between a source symbol and a target symbol. A parallelogram represents enter and output e.g. info entry from a type, exhibit to user.

In producing flowcharts, there are some simple principles to adhere to. Start off and finish details need to be obviously described. The level of detail documented in the flowchart ought to be acceptable to the subject matter lined. The creator of the flowchart need to have a clear understanding of the procedure and the meant viewers need to be ready to comply with the flowchart simply.

Our team of IT auditors, employs Microsoft Visio extensively to develop flowcharts and to assess organization processes. A flowchart is generally made with vertical columns representing diverse departments or phases that are element of an general business process. Interfaces in between departments can be demonstrated no matter whether automated or handbook connections that aid the enterprise method.

Flowcharts can explain the controls on data inputs, processing and outputs. Enter controls may possibly consist of edit and validation checks. Processing controls can be in the type of manage totals or milestones. Output controls might consist of error checking and reconciliations. These kinds of a illustration on a flowchart enables an auditor to recognize places inside a organization process with weak or non-existent controls.

An case in point of technological innovation that can be recognized via flowchart analysis is business resource planning software program these kinds of as Oracle e-Company Suite and SAP. Enter controls are set by way of particular 'rules' to guarantee the validity of data. Method controls are used to substantial-risk features, transactions or types. Output controls consist of studies and reconciliations.

Another example of intricate technology that can be recognized by means of flowcharts is support oriented architecture (SOA). This architecture consists of a lot of web and software program components that are integrated to join support suppliers with service customers. 'Web services' assist certain enterprise procedures. Every single of these world wide web solutions will generally have controls on knowledge inputs, processing and output. The flowchart is important to comprehend this sort of world wide web services and their integration in a broader atmosphere usually through an Business Services Bus (ESB).

In conclusion, a flowchart can be utilized by IT auditors to assess a business procedure. Distinct facets of the process can be emphasised these kinds of as pitfalls, controls, interfaces, determination points, technological innovation infrastructure and components. The well-known expression of a photo is equivalent to a thousand terms is accurate. A flowchart can capture crucial points that verbiage and text are not able to simply match. We stimulate the IT audit, danger and control communities to use this effective instrument in performing their respective functions.