What does a system flowchart illustrate?

A system flowchart illustrates the origin of documents within a system by mapping out the flow of information, processes, and decisions in a structured format. This visual representation helps auditors and other stakeholders understand how data and documents are created, processed, and transferred throughout a system. By breaking down the processes involved, the flowchart highlights how information moves from one stage to the next, which is essential for identifying any potential bottlenecks, inefficiencies, or risks in the system.

In an audit context, understanding the document flow is crucial because it assists auditors in evaluating controls, ensuring compliance, and assessing the integrity of the data being processed. This understanding allows for better planning and execution of audit procedures aligned with the document flow and the associated risks.

The other options focus on different aspects that may not be specifically captured by a system flowchart. The decision-making process in financial audits pertains more to the evaluation of judgments and estimates rather than the flow of documents. Communications between departments may be represented in different types of diagrams but do not specifically convey the flow of documents. Client management structures denote organizational hierarchies and roles that are generally outside the scope of what a flowchart delineates concerning document flow.