Assessment of Accounting Information System for Internal Control Management: A Case Study of Adam and Company Limited

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Accounting Information Systems
Student’s name
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Instructor’s name
Institutional affiliation
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Date

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Table of Contents
Abstract........................................................................................................................ 2
Introduction.................................................................................................................... 3
The purchases system flowchart........................................................................................... 3
Figure 1: Purchase process.............................................................................................. 4
Weaknesses and risks involved with the purchases flowchart.......................................................5
Cash disbursement flowchart system..................................................................................... 6
Figure 2: Sample flowchart of cash disbursement system.........................................................7
The Risks and Weaknesses Faced by the Company using System of Cash Disbursement.....................7
Flowchart about the Payroll System...................................................................................... 9
Figure 3: The System of the Payroll.................................................................................... 10
Weaknesses of Adam & Company Limited Payroll system.......................................................10
Summary Conclusion...................................................................................................... 11
References................................................................................................................... 12

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Abstract
This paper explores the assessment of Accounting information system about the
management of internal control system. In this study, Adam and Company limited is taken as the
case study. The paper explains the system of the flowchart especially the purchase system,
payroll system and the cash disbursement system of the company. The study further assessed the
risks and weaknesses faced by each system in the company and the way it can resolve them. It is
evident that, most organizations have challenges that entail internal control systems arising from
poor management. This therefore leads to the failure of the company. In summary, several points
are concluded about the way how Adam & Company is to succeed in the current century in
which the applications about accounting information systems can be employed on a global basis.
This can be done to resolve different issues that may influence the business entity.

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Introduction
Recently in the globe, the demand rate is very efficient and effective each and every day
and this calls upon for better preparing, recording and analyzing the data concerning finance
(Darrough, et al, 2012). Because of this, Adam and company has come up with different steps
and measures all over the departments of the organization with an intention of meeting the needs
of its customers. Several organizations employ different control measures basing on the goals,
mission and targets for the company. Accounting Information systems thus play an important
role in this field by ensuring accuracy, efficiency and profitability within the organization
(Agbenyo et al, 2018). In this paper, an accounting information system is defined as a structure
or tool that is employed by any company, institute or organization applied to control the internal
performance so that every activity concerning finance is appropriately and accurately done to
minimize losses and errors (Nashwan, 2018). An internal control system has got a set of
principles and laws that an organization should follow to make sure there exists efficiency and
good performance of the business. These principles are used as guidelines to the operation of the
business so that the company can easily reach its set goals (Darrough, et al, 2012). The internal
control system is built up of five components and these are risk assessment, communication and
information systems, environmental controls and finally monitoring and control systems. The
accounting information system is also divided into three components and these include; the
purchases system, the system of payroll and the system of disbursement as they are discussed
below;