Question

Evaluation of Documentation Tools" Please respond to the following:

• You have been assigned to analyze the accounting information for a Fortune 500 corporation. From the e-Activity, evaluate which tools you would use to analyze its business processes, indicating your rationale.
• On the other hand, resources, such as accountants, business analysts, and I/T specialists who rely on documentation tools, will need proper training on these tools. You have been given the responsibility of familiarizing your team with these tools. Evaluate which techniques, in terms of their appropriateness, you would use to get your team ready for its first assignment—the evaluation of a firm’s internal control structure.

Answer 1

Evaluation of Documentation Tools

A Fortune 500 Company is a large enterprise where there are more complicated transactions takes place and requires more detailed auditing to ensure that the company is accounting all their transactions appropriately or not. An in-depth analysis is essential, and at the same time, the level of challenges associated with them is significantly higher.

Documentation is the primary support for all the transactions. It is essential for paying closer attention to the documentation of the Fortune 500 Corporation. The documentation tool that would be beneficial is as follows (Smart Draw, n.d.):

• Document flowchart

• Data flow diagram

• Program flowchart

• System flowchart

Document flowchart is essential as it provides an outline as for how the documentation flow through the company (Tech Target, n.d.). As mentioned earlier a Fortune 500 company will have more business process and complexity in analyzing the transactions are higher. It is essential for evaluation as it will outline the communication flow within the department and what are the documents that every department uses. Data flow diagram is essential to understand as it will indicate how the information is flowing throughout the organization (Lucid Chart, 2017). It will indicate the origination of the document and the final destination. It will indicate what the departments will be covered under the data flow. It will enable to understand whether all department information is met by the company or there any gap in the data flow.

Program flowchart provides an outline of the sequence of the information and the logical flow of the information that enables in preparing the documentation (EDraw, n.d.). It is the logical sequence followed by the computer that enables in determining the effectiveness of the AIS in the organization. It will indicate whether the current system is efficient or whether they require any replacement. System flowchart is an interesting part as they provide information about the flow of the information within the system (Davis & Yen, 1998). It is mandatory to study about them because it indicates whether the procedures are followed correctly or not. It will indicate whether the procedures are up to date or outdated and that plays an important role in the decision making.

All these tools are important, and they should be evaluated because they provide various but important information is essential for making the assessment. It will cover all the parameters and critical information for performing the analysis of the business process of a Fortune 500 company. All components of the documentation tool are crucial, but it is essential to select the most important tool. The most important tool for performing the tasks will be program flowcharts. The main reason for paying more attention and focus on them is that it will indicate whether the system is operating efficiently or not. It is essential for the team to evaluate whether the system is reliable or not and that information can be obtained from the program flowchart. The next thing that will be focused is the system flowchart. It will enable the entire team to understand the flow of the information within the organization.

It is essential to evaluate whether the system flowchart is in line with the requirement or not. Evaluation and ascertaining the efficiency and effectiveness of the information flow provides the best direction for the company. It will indicate whether all the system is updated or outdated, and they are not efficient in providing any valuable information. The next important tool that is essential for the team is the documentation tool. The documentation tool will enable the team to understand all the information presented in the document and how the entire documentation process is being taken place in the company. It will provide an outline of the receiving and sending department involvement in the documentation process which is essential for the analysis.