Internal Management of Cash at Bell Studio

Running head: INTERNAL MANAGEMENT OF CASH
Management of Cash At Bell Studio
Name of the Student:
Name of the University:
Author Note:

INTERNAL MANAGEMENT OF CASH
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Table of Contents
Introduction:....................................................................................................................................3
Body:................................................................................................................................................3
Data flow diagram of purchases and cash disbursements systems:.................................................3
Data flow diagram of payroll system:.............................................................................................7
System flowchart of purchases system:...........................................................................................9
System flowchart of cash disbursements system:..........................................................................10
System flowchart of payroll system:.............................................................................................12

Employees record their
hours of work on time
cards
Supervisors review time
cards and send to
payroll dept.
Payroll clerk prints payroll register
(2 copies) and prepares cheque
Sends cheques
to supervisors Dispatches a copy
of Payroll register
to A/c payable
dept.
Files register
and time cards
INTERNAL MANAGEMENT OF CASH
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. 12
Description of internal control weakness in each system and risks associated with the identified
weakness:.......................................................................................................................................13
Weak control of apex management over cash flow:..................................................................13
Unrealistic assumptions:............................................................................................................13
Conclusion:....................................................................................................................................14

INTERNAL MANAGEMENT OF CASH
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Introduction:
Internal management of cash is one of the most significant operations which business
organisations conduct. Internal management of cash management with the account department at
its helm and under direct supervision of the apex management involves accounting of payments
as well as receipts of money in all the departments. The entire process of cash management as a
result involve myriads of operations like making payments of suppliers and payment of salaries
to the employees on the payroll of the business organisations (Arango et al. 2016). Thus, cash
management attracts substantial risks which have impacts on all the other department. The aim
of the paper is to evaluate the cash management process of Bell Studio, an Adelaide based
wholesaler of artefacts from the view of a business analyst. This would be followed by
evaluation of risk which the present cash management system of Bell Studio presents. The third
part of the evaluation of the internal controls which the accounts department of Bell Studio
follow to ensure its expenditure cycle is aligned to the business requirement of the studio. The
report would be based on a case study which takes into account three areas of cash management
at Bell Studio namely, purchase systems, cash disbursements system and the payroll system.
Body:
Data flow diagram of purchases and cash disbursements systems:
The flow diagram shown below shows that entire data flow process of purchase systems
and cash disbursement system which took in Bell Studio. It must be pointed out that the data
flow in this case refers to the flow of data like the orders placed with the supplier through the
PO. The The diagram below that the purchase systems of Bell Studio was initiated by the
purchase clerk who took opening inventory recording for a particular day and identified the
inventory items which were insufficient (Seifert and Gonenc 2018). The purchase clerk placed