Expenditure Cycle at Bell Studio

Expenditure Cycle
Strategic Information System
Expenditure Cycle at Bell Studio
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Expenditure Cycle
Executive Summary
Strategic Information System is essentially used in the organization to help in making
decisions with regards to the firm activities when compared to the real world. When SIS is used
in a firm, they are known for giving an organization a higher preferred position when compared
with the immediate competitors. It can be used to deliver material or services at cost which are
low and thus separating most of the part as it is focusing on ordering market which in deed is
much creative.
SIS is a basic element in corporate and technology development globally. In additional,
this has been used by many firms as it enhances the organizations to be able to acquire, store, be
able to process information and thus using such received information to create and receive
others. It has also been used in empowering and giving different materials and services that can
be used to help the organization to be able to measure the materials thus enabling them to
perceive the ingenious open doors. This is usually used for development and thus the basic ways
will upgrade the tasks and supply proficiency.
This report has majored on doing an analysis on the procedures, the hazards and the
internal controls that exists in Bell Studio expenditure cycle. The report has been classified in
several parts as stated below. There is the diagram representing the flowcharts and data flow
diagrams of payroll system and disbursement system. The diagrams are used to show how the
processes from one point to another within the given internal controls. The report has also been
used to show how decisions are made with relation to the information movement. It has also
been used to show the associated risks, threats are in the business processes in the Bell Studio
Expenditure cycle scenario. This will help one in understanding the required internal controls in
addressing all the threats.
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Expenditure Cycle
Table of Contents
Executive Summary.......................................................................................................................2
List of Figures................................................................................................................................3
Introduction....................................................................................................................................4
Structural and Modelling Diagrams............................................................................................5
System flowchart of payroll system..........................................................................................6
Data flow diagram of payroll system........................................................................................6
System flowchart of cash disbursements system.....................................................................7
Data flow diagram of purchases and cash disbursements systems.......................................7
System flowchart of purchases system.....................................................................................8
Description of internal control weakness in each system and risks associated with the
identified weakness........................................................................................................................8
Expenditure Cycle......................................................................................................................8
Business Processes......................................................................................................................9
Risks, Threats and Internal Controls.....................................................................................10
Conclusion....................................................................................................................................13
List of references..........................................................................................................................14
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Expenditure Cycle
List of Figures
Figure 1 System flowchart of the payroll system............................................................................7
Figure 2 DFD for Payroll System of Bell Studio............................................................................7
Figure 3 Flowchart for Cash Disbursements system.......................................................................8
Figure 4 Data flow diagram of purchases and cash disbursements systems...................................9
Figure 5 System Flowchart of Bell Studio Purchases System.........................................................9
Introduction
Strategic Information System is essentially used in the organization to help in making
decisions with regards to the firm activities when compared to the real world. When SIS is used
in a firm, they are known for giving an organization a higher preferred position when compared
with the immediate competitors. It can be used to deliver material or services at cost which are
low and thus separating most of the part as it is focusing on ordering market which in deed is
much creative. SIS is a basic element in corporate and technology development globally. In
additional, this has been used by many firms as it enhances the organizations to be able to
acquire, store, be able to process information and thus using such received information to create
and receive others. It has also been used in empowering and giving different materials and
services that can be used to help the organization to be able to measure the materials thus
enabling them to perceive the ingenious open doors. This is usually used for development and
thus the basic ways will upgrade the tasks and supply proficiency.
In the Strategic information system in this case of Bell Studio, will be explained in terms
of the expenditure cycle. EC can be explained to be the detailed collection of the activities
related to the purchases and payment made to various products and services in a given
organization (Kazak, 2015). In the expenditure cycle, the cycle will start when the firm is in need
of any service or a product for the firm operational functions or for trading. In the concept of
expenditure cycle, the internal controls are defined as the systems which have a relationship with
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