Accounting Information System

Running head: ACCOUNTING INFORMATION SYSTEM
Accounting Information System
Name of the Student
Name of the University
Author’s Note

ACCOUNTING INFORMATION SYSTEM1
Executive Summary
This current report has focused on the system of accounting information which would be
associated with the business and controls the overall cycle of expenditure. This study mainly
points out the system flowchart of purchase system which helps the business in recoding their
transactions. System flowchart of cash disbursement system points out the effective management
of cash disbursement system in the business. It also includes payroll system that mainly deals
with payment of salaries and wages of the employees. The study also includes the internal
control weakness along with the risk that are directly associated with the business.

ACCOUNTING INFORMATION SYSTEM2
Table of Contents
Introduction......................................................................................................................................3
System flowchart of purchase system..............................................................................................3
System flowchart of cash disbursement system..............................................................................5
System flowchart of payroll system................................................................................................7
Description of internal control weakness in each system and risk associated with the identified
weakness..........................................................................................................................................9
Purchase system...........................................................................................................................9
Cash disbursement system...........................................................................................................9
Payroll system............................................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

ACCOUNTING INFORMATION SYSTEM3
Introduction
Accounting information system is vital for an organisation as it includes the set of
guidelines which mainly assist the companies to implement the strategies along with planning in
an effective way. System of purchase is associated with the business that also includes other
forms of system like cash disbursement system, payroll system and others. In this study, Adam
and Co has been taken into consideration which is a wholesaler and based in Perth and mainly
supplies industrial products to other business. The centralised accounting system of the business
is connected with networked terminals which are located in different locations. The system
flowchart of different system has been discussed along with proper diagram and the internal
control weakness of every system has been described along with the risk that are directly
associated with the business.
System flowchart of purchase system
The system of purchase is required to be good for satisfying the customers and fulfilling
the needs and goals of the company. This particular system is directly associated with the
inventory of the business firm along with preparation of digital purchase order (Abdul‐Halim et
al. 2016). The company required to put the right quantity of the products and services for
maintaining the right parameters for maintaining the overall function of purchase. A certain
procedure that is formal in nature is required to be followed for introducing the process of
purchase along with placing order to the supplier that are selected by the company in their
normal course of business. The procedure that is formal in nature is required to be selected for
the supplier to initiate the overall process of purchase that would help the company to deal with
the customers. The system of purchase is mainly required to be associated with certain input that
consist of the details of the product which would be visible to the customers (Asare and Wright