Audit Manual
Flowcharting Guidelines
Flowcharting is an effective way to document a process and related control activities. When preparing flowcharts, the following guidelines should be observed:
- In general, Microsoft Visio software should be used to prepare flowcharts. If not available, flowcharts can be prepared using Microsoft Word or Microsoft Excel with the “Drawing” toolbar by clicking “AutoShapes” and selecting “Flowchart”.
- At a minimum, flowcharts should document departments and positions involved, their activities, information and communication systems, documents used or produced, and significant control and monitoring activities; the flowchart should always include the activities necessary to post transactions to the general ledger.
- The flowchart should proceed from left to right and from top to bottom; left to right arrangement should indicate the crossing of departmental lines; top to bottom arrangement should indicate activities within departments.
- Supplemental narratives should be kept to a minimum. Brief narratives, when necessary, should be included on the flowchart itself.
- Feedback should be obtained from process participants to confirm factual accuracy and completeness of presentation.
- Identified control deficiencies should be summarized in the engagement workpapers.