Accounting Information System- Adam & Co Report 2022

Running head: ACCOUNTING INFORMATION SYSTEM-
ADAM & CO.
Accounting Information System- Adam & Co
Name of the Student
Name of the University
Author Note

ACCOUNTING INFORMATION SYSTEM- ADAM &
CO
1
Executive Summary
The report that has been prepared is based on the
given case study of Adam & Co that is Perth-based
wholesaler of industrial supplies. It has a source of
inventories from different manufacturers outside of the
country. The aim of making this report is to understand
the daily process of the entire internal control system.
The study analyzes different weaknesses present within
the Purchase system, Cash disbursement system and
Payroll system and finds several risks linked with the
acknowledged weaknesses. The report concludes with
the decisions that the company could make in respect to
eliminate the weaknesses and the risks. Thus, Adam &
Co increases their level of accuracy and perform the
entire process effectively and efficiently.

ACCOUNTING INFORMATION SYSTEM- ADAM &
CO
2
Table of Contents
Introduction.............................................................3
Discussion..............................................................4
System Flowchart related to -...............................4
(a) Purchase System.......................................4
 Internal Control Weaknesses of Purchase
system...........................................................................6
 Risks associated with the weaknesses.........6
(b) Cash Disbursement System......................6
 Internal Control Weaknesses of Cash
Disbursement system....................................................8
 Risks associated with the weaknesses.........9
(c) Payroll System...........................................9
 Internal Control Weaknesses of Payroll
system.........................................................................12
 Risks associated with the weaknesses.......13
Conclusion............................................................14
References...........................................................16

ACCOUNTING INFORMATION SYSTEM- ADAM &
CO
3
Introduction
The purpose of preparing this report is to
understand as well as to explain the need for an
appropriate accounting information system within the
structure and operating practices of an organization. The
company chosen here through the case study is Adam &
co, which is a Perth-based wholesaler related to the
industrial supplies. It sources their inventories from
manufacturers of China, Thailand and Vietnam. It has a
centralised accounting system with networked terminals
at different locations. The report prepared to the
managing director of Adam & co to evaluate the
processes, internal controls weaknesses and the risks
with the weaknesses identified for their expenditure cycle.
Further, inputted different system flowcharts of purchases
system, payroll system and cash disbursement system
related to the company for ease in understanding. This
report will help the company in making a proper decision
so that they can eliminate the inadequacies within their
system.
The industry-related with wholesale distribution is
rapidly increasing, and it has to face different challenges
(Marvasti et al 2014). Therefore, the company needs to
have a proper accounting system so that it can balance
the quickly changing requirements and demands of their
customers (Lacoste and Blois 2015). In addition, it can