Accounting Information System Report 2022

Accounting Information System 1
Accounting Information System
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Executive Summary

Accounting Information System 1
This report details the expenditure cycle process used in Adam & Co in terms of the
three component systems as payroll, cash disbursement and purchase system. The system
flowchart diagram and data flow diagram are examined and alongside the evaluation of each
of the three constituent systems’ potential weaknesses and risks.

Accounting Information System 1
Table of Contents
Executive Summary...................................................................................................................2
Purchase System.....................................................................................................................4
Diagram1: DFD Purchase System.....................................................................................4
Cash Disbursement System....................................................................................................7
Diagram 2: DFD Cash Disbursements Systems.................................................................7
Payroll System DFD..............................................................................................................8
Diagram 3: Payroll System DFD.......................................................................................8
Purchases System Flowchart..................................................................................................8
CDS System Flowchart........................................................................................................10
Payroll System: System Flowchart......................................................................................11
Weaknesses and Risks in Internal Control System..................................................................13
CDS......................................................................................................................................13
Payroll Systems....................................................................................................................13
Purchases System.................................................................................................................13
Conclusion................................................................................................................................13
Bibliography.............................................................................................................................14

Accounting Information System 1
Introduction
This report intends to probe the Adam & Co expenditure cycle. This is important
since the Company is using a centralized accounting system that has many networking
terminals in a range of destination. The discussion focuses on three constituents of
expenditure as payroll system (PS), cash disbursement system, and purchase system. Both
flowchart diagram and data flow diagram are used to illustrate the association of the
procedures taken by Adam & Co in completing its expenditure cycle. The weaknesses and
risks of each system are also discussed.