Expenditure Cycle Report for Accounting Information System | Desklib

Running head: ACCOUNTING INFORMATION SYSTEM
Expenditure cycle report
Student name:
University name:

ACCOUNTING INFORMATION SYSTEM
Executive Summary
This assignment talks about the accounting system of Adam and Co.’s three important
processes, which are cash disbursement, purchases and payroll repeating their flowcharts to
explain the flow of the work and the way the data is handled and utilized by every level in the
said departmental process. The following flowcharts that illustrate the inputs and the outputs of
all the procedure that is significant to the working of the subsequent section in procession.
The internal controls of such departmental procedure are based on setting up to classifying
any possible fault that may exist in the abovementioned departments. These solution aims to
eradicate any risks that associate witch such problems and faults or any risks that may arise in
the future because of some unforeseen events.

ACCOUNTING INFORMATION SYSTEM
Table of Contents
Executive Summary................................................................................................... 2
Introduction................................................................................................................ 4
Purchase System........................................................................................................ 4
The flowchart.......................................................................................................... 4
Internal control........................................................................................................ 8
Cash disbursements system....................................................................................... 9
The flowchart.......................................................................................................... 9
Internal control...................................................................................................... 11
Payroll System.......................................................................................................... 12
The flowchart........................................................................................................ 12
Internal Control..................................................................................................... 14
Conclusion................................................................................................................ 15
References............................................................................................................... 16

ACCOUNTING INFORMATION SYSTEM
Introduction
Centralizing accounting system is influential to the stability of data and process flow in
any association, but on the account of the comprehensive variety related with such accounting
system, it is very important to have a cognitive presentation for each system. This will boost the
higher tiered management to prepare its results based on clear areas resulting through the
presentation that needs instant notice.
The firm measured for the intention of this assignment is Adam and Co, who is known to
be the industry wholesaler based out of Perth who brings in necessary purchase requirements
internationally from Thailand, Vietnam, and China. The entire cycle of expenditure has been
divided into various departmental level processes that are based on the purchase system, the
payroll system, and the cash disbursement system.
Purchase System
The flowchart
The whole purchase systems of Adam and Co. have programmed to a definite quantity
with value to sourcing in materials for sale to its customers (Bahn and Gandhi, 2015). The entire
purchases systems are illustrated by the following flowchart: