Question

In: Accounting

Do you think flowcharting is a useful skill for auditors? What are some potential benefits of...

Do you think flowcharting is a useful skill for auditors? What are some potential benefits of preparing a flowchart for a process?

Solutions

Expert Solution

Flowchart is a pictorial or graphical representation of a process flowharts are used in many industries including entertainment,engineering, physical sciences, computer programing , accounting the purpous of.all flowcharts is to communicate how a process works or should work with out any technical jargon

Flow charts are great tools to use to visualise complex systems involved in a organisation and are easier and less time consuming for someone to understand than a narrative. By placing everything in a visual manner , it will be easier for an auditor to see the redundancies and an organisation's system of internal accounting control

EASIER AND LESS TIME CONSUMING THAN A NARRATIVE

Placing all relevant information in the form of flow chart cuts down the time for someone to read through all the process that can easily placed in yhe form of one symbol in the form of flowchart. This will intern help an auditor see and grasp the full picture with less time and confusion.

EASIER TO SHOW TRANSACTIONS

One of the major benefits of an auditor in using a flowchart is the ability to show transactions with information in clear and concise format not only does this allow an auditor to find where a problem may be and it also gives him the ability to visualise from where a problem stems

EASIER UPDATING

Auditors also appreciate the ease and ability to update information in aflowchart rather than rewriting a narrative to ecplain why something has happened or why it was wrong. The simple redirection of a symbol to another in aflowchart can easily fix confusion that was in an underlying problem.

This way flowchart helps an auditor in helping and resolving an issue


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