Notes

Automated Flowchart Creation
A flowchart can be hugely useful in auditing critical business applications and systems such as for example enterprise resource planning systems (ERP) and service oriented architecture (SOA) systems. SINCE IT auditors we are worried about getting a clear knowledge of the risks and controls in the technology under review. Flowcharts facilitate a precise assessment of an IT environment.

According to Wikipedia, the basic definition of a flowchart is a kind of diagram that represents an algorithm or process that shows data and its own movement usually with arrows. The application of flowcharts is common in lots of fields for analysis, design, documentation and process management.

Flowcharts are most readily useful to visually display business processes and the supporting technology. Auditors can focus on different facets of data flows and infrastructure in these diagrams with regards to the assessment of risks and controls.

Events that can be captured in a flowchart include data inputs from a file or database, decision points, logical processing and output to a file or report. Risks and controls in a business process could be documented visually and analyzed.

Four basic shapes are commonly used to create flowcharts. A square can be used for an activity (e.g. add, replace, save). A square with a wavy base can be used for a document. A diamond can be used for a choice point (e.g. yes-no, true-false). A sideways cylinder can be used for data storage (e.g. database). These traditional shapes were originally established by IBM and other pioneers of information technology.

Additional shapes include circles, ovals and rounded rectangles for the beginning and end of a business process. Arrows show 'flow control' between a source symbol and a target symbol. A parallelogram represents input and output e.g. data entry from a form, display to user.

In creating flowcharts, there are several basic rules to check out. Start and end points should be clearly defined. The amount of detail documented in the flowchart ought to be appropriate to the subject matter covered. The creator of the flowchart should have a clear knowledge of the procedure and the intended audience should be able to follow the flowchart easily.

We of IT auditors, uses Microsoft Visio extensively to create flowcharts and to analyze business processes. A flowchart is normally designed with vertical columns representing different departments or phases which are part of an overall business process. Interfaces between departments could be shown whether automated or manual connections that facilitate the business process.

Flowcharts can clarify the controls on data inputs, processing and outputs. Input controls may include edit and validation checks. Processing controls could be in the form of control totals or milestones. Output controls may contain error checking and reconciliations. This type of representation on a flowchart allows an auditor to recognize areas within a business process with weak or non-existent controls.

A good example of technology that can be understood through flowchart analysis is enterprise resource planning software such as Oracle e-Business Suite and SAP. Input controls are set through specific 'rules' to guarantee the validity of data. Process controls are applied to high-risk functions, transactions or forms. Output controls contain reports and reconciliations.

AI-Driven Flowcharts of complex technology which can be understood through flowcharts is service oriented architecture (SOA). This architecture includes many web and software components that are integrated to connect providers with service consumers. 'Web services' support specific business processes. Each of these web services will generally have controls on data inputs, processing and output. The flowchart is essential to comprehend such web services and their integration in a broader environment usually via an Enterprise Service Bus (ESB).

In conclusion, a flowchart can be used by IT auditors to investigate a business process. Different aspects of the process can be emphasized such as for example risks, controls, interfaces, decision points, technology infrastructure and components. The famous expression of a picture is equal to one thousand words is accurate. A flowchart can capture essential points that verbiage and text cannot easily match. We encourage the IT audit, risk and control communities to use this powerful tool in performing their respective functions.
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