Internal Control Weaknesses in Bell Studio Information System

Running head: BELL STUDIO INFORMATION SYSTEM
BELL STUDIO INFORMATION SYSTEM
Name of the Student
Name of the University
Author Note

1BELL STUDIO INFORMATION SYSTEM
Executive summary
The report focuses on describing the activities that is taking place within the system of Bell
studio organization. The assessment will focus in describing the different transaction cycles that
takes place within the system of Bell studio. As a business analyst it is important to determine
the major concerns related to each system. The main sources for the Bell studio organization
are Australia, China, New Zealand and Japan. The report will describe the risks and internal
control weakness associated with each system. This organization follows a typical procedure
and ensures effective functioning for the purpose of managing the system and ensures that
system is able to meet the needs of present business. The report will outline the data flow
diagram for purchase and cash disbursement system. In addition to this the data flow diagram
for the payroll system and the system flow chart for all this systems.

2BELL STUDIO INFORMATION SYSTEM
Table of Contents
Introduction.....................................................................................................................................3
Internal control weakness associated with the systems.................................................................3
Purchase system internal control weakness...................................................................................3
Risks related to purchase system....................................................................................................4
Internal control weakness of Payroll system...................................................................................4
Risks associated with payroll system...............................................................................................5
Cash disbursements system internal control weakness..................................................................5
Risks associated with the system....................................................................................................6
Data flow diagram for cash disbursement and purchase system...................................................7
Data flow diagram for payroll system.............................................................................................7
System flowchart for purchase system...........................................................................................9
System flowchart for cash disbursement systems........................................................................10
System flow chart for payroll system............................................................................................11
Conclusion......................................................................................................................................11
Bibliography...................................................................................................................................13

3BELL STUDIO INFORMATION SYSTEM
Introduction
Bell studio is an organization that focuses on manufacturing artifacts. This is an Adelaide
based wholesaler of art supplies that focuses on achieving the products from main
manufacturing industries that are mainly Australia, china, Japan and New Zealand based
company. The organization performs several activities such as manufacturing the product and
delivering it to the customers. The main reason behind reviewing the system functions is that
there are several internal weaknesses that impact the processing. The main activity that is
being performed by purchase system is that it checks the inventory stock and request for
products from the vendor. Thus the system needs to have a proper control over the processing
so that exact process can be performed by the system. The report aims at focusing on the
different activities performed by the system. With the help of data flow diagram it will become
easy to explain the functions performed by each system. The main function associated with the
purchase system is to receive the invoice statement regarding the purchase order. The payroll
system mainly focuses on describing the payments procedures so that it becomes easy to
understand the performance. The system needs to focus on the working and to process a fixed
amount of payment towards every employee. Apart from all this the report will discuss the
main internal weakness associated with each system so that it becomes easy to manage the
activities for better future.
Internal control weakness associated with the systems
Purchase system internal control weakness
The system aims at processing the purchase system so that it can ensure better working
of the system. The internal control weaknesses related to purchase system are going to be
discussed in this part of the report so that it becomes easy to determine the working of the
system. The internal weaknesses that are identified within the system that needs to be
mitigated are described below:
 Inspection process: the main reason behind stating that purchase system involves a
lengthy inspection process because once the products are being delivered than it is
being frequently reconciled by receiving clerk. This takes a long time to calculate the
time taken by checking process and hence the process becomes lengthy that has the
ability to impact the processes performed by the system.
 Manual process impacts the system: the organisation tends to keep data manually
within the system and prints the hard copies for sharing with main stakeholders. This
eventually have ends up sharing the hard copies and leading to consuming extra time.
Thus the process becomes slow and it becomes difficult to conduct different activities
within the purchase department of the Bell studio. Moreover the organisation fails to
manage the data manually as it becomes hard to maintain data within the system.
 Reports shared with different members: the reports prepared within the purchase
departments are further shared with the other member of and this process leads to