Performance support resource

Audit Foundations performance support resource (PSR)

name
Flowcharts

Objective
Flowcharting is an effective way to document our understanding of the flow of information through an
entity’s processes and systems. The steps or activities used by an entity to initiate, authorize, process
and record transactions are represented by various shapes connected with arrows to illustrate the
sequence of events.

Standard symbols
To ensure consistent implementation, the basic elements and standard symbols for use when
constructing flowcharts are as follows:

Shape Description

The start/end shape is used to indicate the beginning (i.e. initiating a

transaction) and end point (i.e. recording in the general ledger) of a
Start/End process. Document the names of the significant accounts impacted by
the transaction within the end shapes.

The manual activity shape indicates a manual step or activity in the

Manual process.
Activity

The automated activity shape indicates a step or activity occurring

Automated inside the system (i.e. system configured to process data).
Activity

The arrow connects the steps and activities in the process. The
arrowhead indicates the direction or sequence of events.

The decision shape indicates a decision point from which the process
branches into two or more paths. The path taken depends on the
answer to the question.
Decision
Document a question with the shape. The responses (e.g. yes/no) are
noted on the arrows the originate from the decision box. Decisions
may be manual or system driven.

The document shape represents a document (i.e. sales order, a

Document contract, supplier’s invoice, etc.) used during the process.

The system shape represents an IT application, database or data file

System where information is stored prior to use in another activity (i.e. pricing
master file).

© 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 1
Flowcharts

Shape Description

The IPE shape represents information produced by the entity

Information that is used in the performance of a control.
produced by The IPE shape can be shaded for easy identification on the
the entity flowchart.
(IPE)

An annotation allows the preparer to document critical

Annotation information (e.g. relevant data elements of IPE) that may not
fit inside the related icon.

The service organization shape is used to show where

information in a process is transmitted to/from a service
organization.
Service
organization

The off-page connector shape provides a visual cue that the

Off-page flowchart continues on another page. A flowchart can range
connector from one to several pages. Complex processes may continue
onto an additional page or link to another process.

The WCGW shape identifies the points within the process at

which a material misstatement could arise.
WCGW Control
1 1 Details of each WCGW and corresponding control should be
documented within eAudIT.

Where to find the standard symbols electronically

In Excel, you can find these standard symbols under:
Insert  Illustrations  Shapes  Flowchart.
Insert symbols in your worksheet by clicking on a selected symbol and then clicking on the place in
the worksheet where you want to insert the symbol.
In Visio, you go to the Template Categories list and click Flowchart.
In the Flowchart window, under Featured Templates, double-click either Basic Flowchart or Cross
Functional Flowchart.
When you open a template, the shapes you need will appear in the stencil on the left hand side of the
drawing page.

Where to find more guidance

For more guidance, hints and tips for preparing a flowchart and illustrative examples, read How to
Flowchart a Process: An Implementation Guide which is available on ALex.

© 2017 KPMG International Cooperative (“KPMG International”). KPMG International provides no client
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2