Bell Studio Case Study Report

Bell Studio Case Study Report
Student’s name
Institution Affiliation(s)

Table of Contents
Table of Contents.............................................................................................................................1
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
Data flow diagram of purchases and cash disbursements systems..................................................4
Data flow diagram of payroll system...............................................................................................7
System flowchart of purchases system............................................................................................8
System flowchart of cash disbursements system...........................................................................10
System flowchart of payroll system..............................................................................................11
Internal Control..............................................................................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
Table of Figures
Figure 1: Data flow diagram of purchases and cash disbursements systems.....................................4
Figure 2: Data flow diagram of payroll system.........................................................................6
Figure 3: System flowchart of purchases system.......................................................................7
Figure 4: System flowchart of cash disbursements system...........................................................9
Figure 5: System flowchart of payroll system........................................................................10
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Executive Summary
This is a report analyzing the Bell Studio Company which outsources its various
inventories from manufacturers around the world including New Zealand, Japan, China, and
Australia. Bell Studio uses a centralized accounting system that has networked terminals at each
of the company’s different locations. The report analyses the three main departments at Bell
Studio organization which are the purchases system, cash disbursement system and the payroll
system. The case study describes Bell Studio’s expenditure cycle procedures and their use of an
accounting information system.
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Introduction
The report is prepared by a business analyst for use by the management and the decision
makers of Bell Studio. The report analyses the Bell Studio case study by describing the various
transaction cycles, financial reporting, e-commerce, and management reporting systems (Trigo,
Belfo, & Estébanez, 2014). The case study has identified three main departments that need
describing these departments are the payroll system, cash disbursement system and the purchases
system.
The report will be structured by having a cover page, an executive summary, an
introduction, the conclusion and the main body where these three systems will be described, that
is the purchases system, the cash disbursement system and the payroll system. The report will
use both data flow diagrams and system flowchart diagrams for easier analysis of the system. At
the end of the report, the internal control weakness in each of these three systems and the risk
associated with the identified weaknesses.
Data flow diagram of purchases and cash disbursements
systems
The use of accounting software has enabled the timely provision of financial statements
to the decision-makers for Bell Studio. For instance, the balance sheet shows the financial
position of the company in terms of asset, liabilities and equity availability (Belfo & Trigo,
2013). Since the previous data is also provided, the management of Bell Studio is able to notice
any favourable or unfavourable changes in the company’s assets, liabilities and equity levels. It,
therefore, eases the identification of items that exhibit unfavourable changes. For example, a
trend showing a reduction in the net profit of the company could be used to make decisions and
implement strategies that increase the cash flow generation for Bell Studio. Thus, the accounting
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