Design Thinking Reflection - Visualization

Challenge

Visualization is a tool that I use all the time. I work at an accounting firm and evaluate the design and  operating effectiveness of our clients’ financial controls over various financial processes. My client is a  big public company, and has multiple controls for each financial process, such as the process around  payroll, inventory, revenue, and expense. Effectively designed controls mitigate the risk of material  misstatement related to financial account balances.

In order to evaluate the design effectiveness of their financial controls, we need to first obtain a  preliminary understanding of the process through reviewing any available documents, such as process  narrative or flowcharts, and we identify all the potential risks. Then we meet with the process owners to  obtain clarification and confirmation. After that, we determine if the risks are being mitigated by the  existing control, and if not, what attributes should be added to the new or modified control in order for  it to be effective by design.

The challenge is that some financial processes could be quite complicated, and we may miss to identify  all the significant risks, and in turns misjudge the effectiveness of the design of the controls.  Furthermore, there could be misinterpretation of the processes and controls because the processes are  complicated and new to us. I needed to cover the process around the “capitalized expense” account and  this process did not have a flowchart and the narrative was a little bit confusing.

Selection

In order to ensure that we identify all the significant risks, what could go wrong, and that we obtain a  thorough and accurate understanding of the processes we used visualization extensively as a team to  communicate our thoughts.

Application

Before we meet with the process owners, me and my supervisors met and discuss how we expect this  process should be like based on reading the narrative provided. I draw out a flowchart of the process on  a white board by marking the initiation point, then write out each step in a box, mark the end of the  process. I used arrows to connect the boxes, and added the risk I identified at where things could go  wrong and marked down the questions we have for the process owners. My supervisors also added to  this flowchart their interpretation of the narrative, inputted the risks that I did not see earlier.

Then we met with the process owners to obtain clarifications and asked questions on how certain risks  are addressed by procedures that are not discussed within the narrative. During the meeting we  confirmed our interpretation of their explanation by drawing out the process in the form of a flow chart.

After the meeting, I documented the process in greater details in a report and walked through my senior  manager, whom did not attend the meeting with the clients, the report and the process by drawing out  the process in front of him as I present to him the client’s process, the controls, the risks we identified,  and our conclusion on the effectiveness of the controls.

Insight and Approach

The result of using visualization as a communication tool was great. Through using this tool, we were  able to communicate effectively. It allowed us to break down a complicated and big context – a process  – into smaller pieces, and ensure clear communication between me and my supervisors, our clients, and  our senior manager. By drawing out the flowchart, we were able to visually identify the risks at specific  points of the process that we did not see before. Furthermore, visualization allowed us to collaborate  more effectively because we could look at the flow chart together to discuss what we see, and provide  inputs.

Visualization is definitely a very powerful tool and I will continue to use it for any similar challenges in  the future, as well as for presentation, collaboration, and learning new concepts myself.


Design Thinking Reflection - Visualization Challenge Visualization is a tool that I use all the time . I work at an accounting firm and evaluate the design and operating effectiveness of our clients ’ financial controls over various financial processes . My client is a big public company , and has multiple controls for each financial process , such as the process around payroll , inventory , revenue , and expense . Effectively designed controls mitigate the risk of material misstatement related to financial account balances . In order to evaluate the design effectiveness of their financial controls , we need to first obtain a preliminary understanding of the process through reviewing any available documents , such as process narrative or flowcharts , and we identify all the potential risks . Then we meet with the process owners to obtain clarification and confirmation . After that , we determine if the risks are being mitigated by the existing control , and if not , what attributes should be added to the new or modified control in order for it to be effective by design . The challenge is that some financial processes could be quite complicated , and we may miss to identify all the significant risks , and in turns misjudge the effectiveness of the design of the controls . Furthermore , there could be misinterpretation of the processes and controls because the processes are complicated and new to us . I needed to cover the process around the “ capitalized expense ” account and this process did not have a flowchart and the narrative was a little bit confusing . Selection In order to ensure that we identify all the significant risks , what could go wrong , and that we obtain a thorough and accurate understanding of the processes we used visualization extensively as a team to communicate our thoughts . Application Before we meet with the process owners , me and my supervisors met and discuss how we expect this process should be like based on reading the narrative provided . I draw out a flowchart of the process on a white board by marking the initiation point , then write out each step in a box , mark the end of the process . I used arrows to connect the boxes , and added the risk I identified at where things could go wrong and marked down the questions we have for the process owners . My supervisors also added to this flowchart their interpretation of the narrative , inputted the risks that I did not see earlier . Then we met with the process owners to obtain clarifications and asked questions on how certain risks are addressed by procedures that are not discussed within the narrative . During the meeting we confirmed our interpretation of their explanation by drawing out the process in the form of a flow chart . After the meeting , I documented the process in greater details in a report and walked through my senior manager , whom did not attend the meeting with the clients , the report and the process by drawing out the process in front of him as I present to him the client ’s process , the controls , the risks we identified , and our conclusion on the effectiveness of the controls . Insight and Approach The result of using visualization as a communication tool was great . Through using this tool , we were able to communicate effectively . It allowed us to break down a complicated and big context – a process – into smaller pieces , and ensure clear communication between me and my supervisors , our clients , and our senior manager . By drawing out the flowchart , we were able to visually identify the risks at specific points of the process that we did not see before . Furthermore , visualization allowed us to collaborate more effectively because we could look at the flow chart together to discuss what we see , and provide inputs . Visualization is definitely a very powerful tool and I will continue to use it for any similar challenges in the future , as well as for presentation , collaboration , and learning new concepts myself .