Refer to questions 9.2 and 9.3 above and explain how a data flow diagram would help the auditor to understand how the entity’s order entry system is operating.

Why would a data flow diagram be better than a document flowchart for this purpose?

Questions 9.2

Assume that Ann Paterson, an established customer, has telephoned asking to be supplied with three recently published books.
She speaks to a sales clerk who deals with her order. Suggest controls that should be in force before her order is accepted.

Questions 9.3

Assuming that the order is accepted and that the books will be supplied on credit, explain what records will be affected by the transaction and the information/audit trail details that should be recorded.