through computer programming techniques and password controls that cannot be represented visually on a flowchart. Indeed, a single box (program icon) on a system flowchart may consolidate tasks of many different organizational units.
Finally, manual systems are a fundamental component of the framework for viewing technology innovations. The shortcomings and failings of current generation technology become the design imperative for the next. The first generation of computer technology emerged out of the manual environment. An argument can be made that understanding what used to be state of the art improves one’s understanding of what led us to where we are now.
For these reasons, some instructors prefer to teach manual systems before moving on to computer applications. Others favor moving directly to computer-based systems. This section has been organized to accommodate both teaching styles. Following is a review of manual systems. You may, however, with- out loss of technical content, bypass this material and go directly to computer-based accounting systems located on page 177.
Manual Systems
The purpose of this section is to support the system concepts presented in the previous section with models depicting people, organizational units, and physical documents and files. This section should help you envision the segregation of duties and independent verifications, which are essential to