A flow chart is a diagrammatical representation of an accounting system. Use of flow charts has the following advantages: –
• Easy to prepare
• Since the information is presented in a standard form, flow charts are easy to follow and review.
• They generally ensure that the system is recorded in full, all the documents have to be traced from beginning to the end.
• They eliminate the need for lengthy narratives and can be very effective in highlighting the salient features of internal controls and any weaknesses in the system.