Accounting Information System Solved Assignment

Accounting Information
System

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Purchase system......................................................................................................................1
Cash disbursements system....................................................................................................3
Payroll system........................................................................................................................5
Internal control weakness in each system and risk associated with weaknesses...................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
An accounting information system is an effective system that collects, store and process
financial as well as accounting data that are useful in decision making process. It is a computer
based method which are being used by companies in tracking accounting activity. This present
study is based on Adam & Co that is a Perth based wholesaler of industrial suppliers. It uses a
centralized accounting system with network terminals at different locations. This study is going
to show different payroll system that this company uses (Libby, 2017). Purchase system helps
the company in acquiring only those products which are required by them. Cash disbursement
system also play an important role in accounting information system as it supports Adam & Co
to issue check to vendors and third party in accurate and timely manner. Further it will also show
the importance of payroll system as it ensures both employees and employers that they are being
paid accurately on the basis of their working hours.
Purchase system
A purchasing system can be defined as a process that is being followed by manager of an
organization to acquire goods and services for company. Some steps involves in purchase system
is being defined as follows:
1

Accept purchase requisitions from users: A purchase requisition is a form that is filled
out by an employee of Adam & Co, requesting that purchasing department of this company
obtain certain goods and service. This form includes all informations about the nature of
products that need to be acquired and time as when they are needed. For authorization,
2
Illustration 1: Purchase system