Accounting Information Systems: Internal Control Systems Assessment of Adam & Co

ACCOUNTING 1
Accounting Information Systems
Student’s name
Course
Instructor’s name
Institutional affiliation
City and state
Date

ACCOUNTING 2
Table of Contents
Executive Summary.......................................................................................................... 3
Introduction.................................................................................................................... 4
The flowchart of purchases system....................................................................................... 4
Figure 1: Purchase flowchart process.................................................................................5
Weaknesses of the purchase flowchart...................................................................................6
Flowchart of cash disbursement system.................................................................................7
Figure 2: Sample flowchart of cash disbursement system.........................................................8
The likely risks experienced by the company in the cash disbursement system.................................8
The flowchart of the pay roll system................................................................................... 10
Figure 3: Payroll System............................................................................................... 11
The weaknesses of the Adam and company payroll system.......................................................11
Conclusion................................................................................................................... 12
References................................................................................................................... 13

ACCOUNTING 3
Executive Summary
In this paper, an assessment of Accounting Information System in managing internal
control systems is performed mainly taking Adam & Co as the case study. It explains how the
flow chart systems such as the flowchart of purchases system , the flowchart of the pay roll
system and the system of cash disbursement. The risks and weaknesses faced by every system
and how it can be overcome are also addressed in this short report. Many organizations face
challenges concerning the internal control systems mainly due to poor management and this
contributes to the failure of a business. Finally, conclusions are made on how Adam & Company
can succeed in this 21st century where the application of Accounting Information Systems are
globally employed to overcome several issues that may affect the business.

ACCOUNTING 4
Introduction
In the current world, the rate of rate of effective demand and efficiency in preparing,
recording and analyzing the financial data within companies is at a higher speed (Darrough, et al,
2012). Because of the increased, Adam & Co has developed several measures within the
organization to meet its customers’ needs. Organizations have got various control measures
depending on the objectives, mission and goals set by an organization and due to this, systems in
accounting information have greatly influenced the trends in ensuring efficiency and effective
performance in organizations (Agbenyo et al, 2018). Therefore, an accounting information
system can be defined as a tool or structure that an entity employs to internally control and
ensure that every financial activity is performed in the most efficient and proper format
(Nashwan, 2018). Internal control systems has got rules, policies and regulations that require to
be followed by an organization to offer high efficiency and strengthen the set policies. These
policies help any organizations to reach its target basing on the objectives set (Darrough, et al,
2012). The internal control system is said to be composed of five components that include;
environmental controls, risk assessments, information and communication, monitoring and
control activities. The system is also divided into three that is to say; the purchases control
systems a, system of cash disbursement and then payroll system as they are discussed below;
The flowchart of purchases system
The purchases flowchart system is defined as a set of steps or stages that is followed by a
company while purchasing and procuring assets, materials, inventories or even stock that are
required by the business to operate. In other words, the purchase flowchart system is a couple of
events that are worked upon by different individuals (Monisola & Rekiat, 2016). The system is