LO1: Information Flow

Information flow is the movement of information relevant to the business, from where it is produced, to where it can be produced.

Two types of Information Flow : 1) Internal Information Flow 2) External Information Flow

Internal information flow - information generated by functional areas (department) and is shared with other functional areas.

External information flow - information passes to agencies outside the organization.

Information flow diagram - an information flow diagram shows the steps involved in data flow.
It includes - where data is originally produced
- where it is turned into information
- where decisions are made on that data.