Case Study- Adam & Co

Running head: CASE STUDY- ADAM & CO
Case study- Adam & Co
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CASE STUDY- ADAM & CO
Executive summary:
In accordance to the underlying demonstration, it can be said that the use of the
flowchart helps to understand the process of different department of the company.
The information available in the case study regarding Adam and Co, shares their
engagement in the industrial supplies and make use of three departments for
processing the expenditure cycle. The lack of proper internal control system
increases the probability of risk increment in the system. In order to represent the
managing director of Adam and Co the following report is made and this report
assists in the risks, process and internal control evaluation of the expenditure cycle
process.

CASE STUDY- ADAM & CO
Table of Contents
Introduction:..................................................................................................................2
Discussion:...................................................................................................................2
System flow chart of purchase system:........................................................................2
System flow chart of cash disbursement system:........................................................2
System flow chart of payroll system:............................................................................2
Identifying the internal control weakness in the system and its associated risks:.......2
Conclusion:...................................................................................................................2
Reference list:...............................................................................................................3

CASE STUDY- ADAM & CO
Introduction:
Based in Perth, Australia, Adam and Co are known to be wholesalers of the
industrial supplies. Inventory sourcing is accomplished by the companies hailing
from the manufacturers in Thailand, Vietnam and China. The company also adopts a
centralized accounting system having networked terminals available at different
locations. The expenditure and cycle procedure of the company are made of the
three main systems comprising of the purchase system, payroll system and cash
disbursement system. In this report, the procedures of the three departments of the
expenditure cycle is explained with the help of flowchart that provides with a detailed
presentation.
Discussion:
System flow chart of purchase system:
In order to have a better understanding of the purchase system, a flow chart
system has been incorporated which eases the explanation of each of the system
separately, right from explaining the workflow process to stepwise approach in
solving the work the task in any system. The complete evaluation of the purchase
system of Adam and Co can be explained by one by one stepwise direction as
indicated in the flow chart. These diagrams depicts in assisting the users in obtaining
gains by proper understanding and evaluation of the purchase system. The initiative
of the journey begins from the approval of the purchase order to receiving invoice
and obtaining the delivery which is ultimately followed by the closure. The
identification of the requirement of the order placement is obtained by the purchasing
clerk as and when he/she checks for the inventory subsidiary ledger falling below a