Case Study of Bell Studio: Expenditure Cycle and Internal Controls

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Strategic Information System
Case study of Bell Studio
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Institutional Affiliation
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1 | P a g e

Executive Summary
Expenditure cycle can be portrayed as an amassing of activities identified with buying, and
installment for services and product. The cycle starts by when a firm needs some administration
or product for an administrative limit or selling. The invested individual must fill an order
structure giving all of the nuances and sending it to the purchasing division. The focal point of
this paper is a discussion on the different exercises and procedures that are completed in the
expenditure, the choices that must be made and the data that is required to settle on these
choices, the primary hazard, and dangers in the consumption cycle, and the inner controls
required to address the dangers. The organization should put more complement on their stock
control is given any inadequacy may understand exceptional issues with this method. The choice
of the method for stock control is the essential issue that impacted the mentioning strategy.

Table of Contents
Executive Summary...........................................................................................................2
Introduction........................................................................................................................4
Data Flow Diagram (DFD) of Bell Studio Purchases and Cash disbursements
systems............................................................................................................................................5
DFD for Bell Studio Payroll System.................................................................................5
System Flowchart of Bell Studio Purchases System.......................................................6
System Flowchart of Bell Studio Cash Disbursements System.....................................7
System Flowchart of Bell Studio Payroll System................................................................8
Description of internal control weakness in each system and risks associated with
the identified weakness..................................................................................................................8
Expenditure Life Cycle Overview...................................................................................8
Expenditure Procedure business Processes.....................................................................9
The request of materials, the services offered and what to be supplied...............9
Receiving and Storing Goods....................................................................................9
Pay for Products and Services................................................................................10
Risks in the Ordering Process........................................................................................10
Risk Payment Procedures..............................................................................................11
Conclusion........................................................................................................................11
List of References.............................................................................................................13

Introduction
Expenditure cycle can be portrayed as an amassing of activities identified with buying,
and instalment for services and product. The cycle starts by when a firm needs some
administration or product for an administrative limit or selling. The invested individual must fill
an ordered structure giving all of the nuances and sending it to the purchasing division. Chow et
al., (2018) has portrayed inner control as a system that is connected with the differentiation rent
practices and methodology made by substances that are away for confirming assets, improving
profitability, ensuring the accuracy of bookkeeping data information, and evaluating the
consistency of strategy and methodologies of the officials.
This report idea is separating the methodology, threats and inside controls for utilization
cycle at Bell Studio. The consideration will major in the stated sections. It will show the
flowchart and data stream graphs for the different systems, analyzing the various activities and
methods that are done in the utilization, the decisions that must be made and the information that
is required to settle on these decisions, the major peril and risks in the utilization cycle, and the
internal controls required to address the threats.