Accounting Information System Course 2022

ACCOUNTING 1
Accounting Information System
Student’s name
Course
Instructor’s name
Institutional affiliation
City and state
Date

ACCOUNTING 2
Table of Contents
Executive Summary.......................................................................................................... 3
1.1. Introduction............................................................................................................. 4
Figure 1: The Flowchart of the Purchases System..................................................................6
2.1.1Risks and Weaknesses in Purchase flowchart.................................................................6
2.2. The disbursement flowchart System................................................................................7
2.2.1 Common risks and weaknesses observed in the cash disbursement system at Adam & Co.........8
2.3. The flowchart of the pay roll system..............................................................................10
Figure 3: System payroll flowchart.................................................................................. 10
2.3.1 The risks and weaknesses within Adam and company payroll system................................11
Conclusion................................................................................................................... 11

ACCOUNTING 3
Executive Summary
The study seeks to assess information accounting systems especially in internal control
system management. In this context, the case study company is Adam & Co limited. This paper
therefore the paper investigates the internal control systems of Adam and Company using three
systems. These systems include the following payroll system, cash disbursement and purchase
system of the organization. Furthermore, the paper examines the weakness and risks influenced
by every control system in the company with their respective resolutions. It is therefore clear that
several companies are attributed to challenges which arise from internal control systems due to
improper managements. Such managements end up making the companies to fail and thus
quitting the business. In addition, some procedures are highlighted in the way how companies
can resolve such risks and thus attaining their set objectives especially Adam &Co limited.

ACCOUNTING 4
1.1. Introduction
Currently in the world, the rate of demand is more effective and reliable services being
given to customers. This situation demands for well prepared, recorded and analyzed data
together with consistent reporting of financial statements (Hla& Teru,2014). Due to such a need,
Adam & Company has tried to provide various procedures and resolutions among all the units of
the company in order to meet the interests of the clients. It is believed that various companies
provide resolutions in relation to the vision, targets and the goals of the organization. For this
case, Accounting Information Systems are considered to be very essential in the field of
accounting in order to ensure efficiency, reliability, accuracy and profitability in the company
(Agbenyo et al, 2018). In this context, accounting information system can be referred to as the
equipment of the structure applied by the company or any organization to control and monitor
the organizations performances. These performances are mostly hinting on the financial and
accounting systems since they act as the backbone of the business entity due to the accuracy to
eliminate financial errors and losses (Nashwan, 2018). The organization’s control system has
been guided with various laws and principles that should be followed to ensure proper
governance and prosperity of the business. Such rules and principles set are useful since they act
as the key procedures of operation of the company in order to reach its set targets (Darrough et
al, 2012). More so, the system of ‘internal control’ is comprised of five categories and such
categories include risk assessment, environment controls, communication and information
system, monitoring and evaluation of control systems. In this case of Adam and Company,
accounting information systems are categorized into three. These include payroll system,
disbursement system and system of purchases. These accounting information systems are
explained as below.