Analysis of Bell Studio's Expenditure Cycle Process

Bell Studio

Executive Summary
In this report, the analysis of Bell Studio business is done who is an Adelaide-based
wholesaler of art and craft. It is considered that the company has its business in
different locations and they have a centralized accounting system and have various
networking terminals. In this report, in-depth evaluation is done on the expenditure cycle
process. The systems which are executed in the business for the expenditure cycle are
payroll system, cash disbursement system and purchase system. A data flow diagram is
presented in the report for understanding the process and the system flowchart
represented the risks and potential weaknesses of the various systems in business.
Contents
Introduction........................................................................................................................3

Data flow diagram of purchases and Cash disbursement systems..................................4
Data flow diagram of payroll system..................................................................................6
System flow chart of purchases system............................................................................8
System flow chart of Cash disbursement systems............................................................9
System flowchart of payroll system.................................................................................11
Internal control weaknesses and risks in each system...................................................12
Conclusion.......................................................................................................................13
Reference........................................................................................................................14
Introduction
Bell Studio is a wholesaler of Art supplies. They purchase the inventories from Australia,
China, Japan, and New Zealand. In the expenditure cycle, it is essential to enable the
conversion of the cash for the business, physical material and human resources for

enhancing the various business functions for the growth and expansion of business. In
this report, the analysis of expenditure cycle will be done which includes the purchase
system, payroll system, and cash disbursement system of the Bell Studio. In this report,
the analysis and evolution of various weaknesses and the system risks will also be
discussed which can be faced by the management. In order to evaluate the risk,
process and internal control of the business will help the Chief Operating Officer in its
expenditure cycle. In business it is necessary to have internal control. Internal control is
the set of activities that shows the cost price and the elements which are to be
controlled regularly for slowing the procedure flow of the business. It is essential for
management to balance the efficiency and decline with the help of system development
of internal control.
Data flow diagram of purchases and Cash disbursement systems
Data flow diagrams are an effective way to understand the process and it will help the
firm to make procedures convenient. It makes the procedure easy and implementing the