Adam & Co Company.

Adam & Co Company 1
Adam & Co Company
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Adam & Co Company 2
Executive Summary
The discussion in this report seeks to understand the expenditure cycle of Adam & Co
which has a centralized system of accounting with manifold networking terminal in diverse
destinations. Thus a deeper examination of this cycle process is undertaken based on three
system including purchase, payroll and cash disbursement which make up expenditure cycle.
This discussion is supported by data flow diagram, and flowchart diagram to help understand
the systems in Adam & Co. This discussion also involves the examination of the potential
risks and weakness of all the three systems.

Adam & Co Company 3
Table of Contents
Executive Summary...................................................................................................................2
Introduction................................................................................................................................4
DFD Cash Disbursements (CDS) & Purchases Systems (PS)...................................................5
Purchase System.....................................................................................................................5
Fig1: DFD Purchase System..............................................................................................5
CDS........................................................................................................................................9
Fig 2: DFD Cash Disbursements Systems.........................................................................9
Payroll System DFD............................................................................................................10
Fig3: Payroll System DFD...............................................................................................10
Purchases System Flowchart................................................................................................11
CDS System Flowchart........................................................................................................13
Payroll System: System Flowchart......................................................................................14
System Internal Control Weaknesses and Risks......................................................................15
Payroll Systems....................................................................................................................15
Purchases System.................................................................................................................15
CDS......................................................................................................................................15
Conclusion................................................................................................................................16
Bibliography.............................................................................................................................17

Adam & Co Company 4
Introduction
The main aim of this report is to examine the expenditure cycle of Adam & Co which
uses a centralized system of accounting with multiple networking terminal in diverse
locations. Therefore a comprehensive investigation into this expenditure cycle process is
carried out premised on three system which include purchase, payroll and cash disbursement
which make up expenditure cycle. The analysis is backed by data flow diagram, and
flowchart diagram to assist in understanding the systems in Adam & Co. This examination
further encompasses the probe of the weakness and potential risks in all the three systems.