Strategic Information for Business and Enterprise

This report discusses the centralized accounting system used in Bell Studio, including its working process, pitfalls of transaction cycles, management reporting, and financial reporting. It also covers computer frauds in the system and suggests security measures to mitigate them. The report provides insights into the data flow diagrams and system flowcharts of purchases, cash disbursements, and payroll systems. Internal control weaknesses and associated risks are identified, along with solutions to mitigate these risks. The report concludes with recommendations for the Bell Studio management.

Strategic Information for Business and Enterprise
Name of Student-
Name of University-
Author’s Note

Executive Summary
Centralized accounting system is an important for every organization and the case that
is considered for this assignment also uses the concept of centralized accounting
system. The centralized accounting system helps Bell Studio to collect the data, store
the data as well as manage the data in the system. It helps to control all the
departments such as manage the budgets, accounts receivables, expenditures as well
as other transactions that are related with the company. The following report states the
detail working process of Bell Studio describing the pitfalls of the transaction cycles,
management reporting, as well as financial reporting in the system. The computer
frauds in the system of Bell Studio is also discussed in the following report along with
the security measures that can be taken to mitigate the issues.

Table of Contents
Introduction........................................................................................................................4
Data Flow Diagram of Purchases and Cash Disbursements Systems.............................5
Data Flow Diagram of the Payroll System.........................................................................6
System Flowchart of Purchases System...........................................................................7
System Flowchart of the Cash Disbursements System....................................................7
System Flowchart of Payroll System.................................................................................9
Internal Control Weakness and Risk Associated............................................................10
Solution for risk associated..............................................................................................11
Conclusion.......................................................................................................................12
References.......................................................................................................................13

Introduction
The centralized accounting system in the Bell Studio helps to keep all the data
related to the transaction system. The centralized system is carried out physically as
well as digitally in Bell Studio. The centralized system controls all the departments in the
company. This system also controls the budgets, account payable, the expenditure of
the company, the accounts receivable as well as all other transactions in the
organization.
The centralized accounting system that is used in Bell Studio includes the
enterprise resource planning (ERP). This is a software that are used in different
branches of Bell Studio helping the managers and the clerks to keep a track on the data
of the organization. Bell Studio has different branches and data is generated from
different branches and all the data are to be updated on the centralized system so that
they management can get the overview of the data at every locations of the company.
All the records of different branches are recorded in the centralized system.
The following report below particularizes the detail working process of Bell Studio
describing the pitfalls of the transaction cycles, management reporting, as well as
financial reporting in the system. The computer frauds in the system of Bell Studio is
also discussed in the following report along with the security measures that can be
taken to mitigate the issues.

Data Flow Diagram of Purchases and Cash Disbursements Systems
Figure 1: Data Flow Diagram of Purchases and Cash Disbursements Systems
(Source: Created By author)

Data Flow Diagram of the Payroll System
Figure 2: Data Flow Diagram of Payroll System
(Source: Created By author)
Explanation: The purchase process and the cash disbursement process are
shown in the diagram above. There are process and terminator. The terminator in the
diagram above states different organization associated with Bell Studio, different group
of people, different authorities and all departments associated with Bell Studio. The
termination helps to establish communication in the system. The process in the
diagrams above are shown in circle. There are various processes that are associated
with the purchasing system, cash disbursement and the payroll system. The diagrams
also shows the database storage system and the warehouse system that are
associated with Bell Studio. The arrows in the diagrams show the flow of data from one
component to other.
Many processes in figure 1 and figure 2 are shown that are related with the Bell
Studio’s purchase and the cash disbursement system. The processes are conducted
manually and the updates are recorded in the centralized accounting system that is
used in Bell Studio. The processes that are included in the purchasing system and the
cash disbursement system checking the inventory, purchasing the materials, ordering
the materials, making receiving report, checking reports, payment process and the

updating process. The processes that are included in the payroll system are recording
time, rechecking the time cards, sending cheques, printing the cheques, printing the
payroll registers, preparing voucher, and depositing the payroll register.
System Flowchart of Purchases System
Figure 3: System Flowchart of Purchases System
(Source: Created By author)

System Flowchart of the Cash Disbursements System
Figure 4: System Flowchart of Cash Disbursements System
(Source: Created By author)

System Flowchart of Payroll System
Figure 5: System Flowchart of Payroll System
(Source: Created By author)

Internal Control Weakness and Risk Associated
System considered
from Bell Studio
Internal Control Weakness Risk Associated
Purchasing System 1. The clerk of purchasing
department is associated with
the purchasing system and the
system is fully dependent on the
clerk’s work.
1.1 Internal risk is
associated in the
purchasing system. The
clerk does not work in the
system, the purchasing
process will stop
immediately.
2. The system does not include
automatic system updating the
data. The receiving document
does not have any digital
automatic format. Printed form
of receiving document is
associated with the system.
2.1 Human risk is
associated with this
internal flaw. The receipt
written may be wrongly
written and receipt may get
lost wile in shipment.
3. Handling the documents in
files are also an internal
weakness of the system.
3.1 Transferring of the files
are done from one
department to another.
From the purchasing
department, the files are
transferred to the accounts
department and there may
be a risk of missing
documents or missing
some files from the
documents.
Cash Disbursement
System
1. In this transaction system,
there might be a risk of
submitting wrong cheque or
writing wrong number on the
cheque. This might lead to loss
of the company or might create
an issue in the payment
procedure.
There might be mistake in
writing the cheques as it is done
manually.
1.1 Risk include is
company loss and face
difficulties in matching
budget sheet.
2. The payment procedure is
done through cheque and
encashment of cheque is a long
process. The employee has to
waste their time and effort in
encashing the cheques.
2.1 Risk is losing customer
retention as payment
procedure through cheque
might result in loosing of
cheque and taking long
time to complete the

transaction. (Upward and
Jones 2016).
3. Cheque might be misplaced
and there can be wrong value
written on the cheque (Wellin
2016).
3.1 Risk is managing the
budget of the system. If the
cheques are misplaced or
value of cheques are
written wrong, then the
company faces risk of
matching the budget of
process (Korableva and
Kalimullina 2016).
Payroll System 1. Extra burden of paying a
cheque in bank in the company
account so that the employee
can get their required money
(Collier 2015).
1.1 Risk of handling long
process and insufficient
system (Woerkom et al.
2016).
2. The payroll clerk makes
copies of registers and files and
while coping the contents, there
might be some mistake (Safari,
Faraji and Majidian 2016).
2.1 Risk that is involved is
the human risks that might
occur while making copies
of the register and
cheques.
3. The employee might
unethically input their entry time
and exit time of their working
hours as different and it is not
possible for the supervisor to
keep notice on all the
employees (Quirke 2017).
3.1 Risk of lessening the
productivity of the
company and risk of loss
of money as because the
employees are paid on
their working hours in
office and more working
hours will lead to more
payment of money.
Solution for risk associated
The security measures that can be used for controlling the theft associated with
the above risks stated in the workflow of the system are listed below. These security
measures can help the company to identify the associated problems, prevent the risks,
and take preventive measures to mitigate them (Korableva and Kalimullina 2016).
 It is recommended that the management should change the passwords of the
system or the software frequently to avoid any kind of internal and external fraud.
 It is recommended to have a proper encryption technique that might help to
secure the data more efficiently.
 The Bell Studio should include some supervisor so that the report related with the
system can be reviewed periodically (Luftman, Lyytinen, and Zvi 2017).
 The server that the Bell Studio is using should be safe as well as protected.

 It is also recommended to have a proper backup system or cloud so that the data
in the system are stored securely and safely in the cloud of the system.
Conclusion
The centralized accounting system that is used in the system of Bell Studio helps
the organization to handle the payables as well as receivables that comes from different
suppliers from different locations. This centralized accounting system in the Bell Studio
helps in keeping all the data related to the transaction system. The accounting system
helps the organization to have a consistent as well as efficiently work helping the
organization to work in a coordinate the work. This helps to standardize each of the
procedures so that fine tuning is done in the working process. The centralized system is
carried out physically as well as digitally in Bell Studio. The centralized system controls
all the departments in the company. This system also controls the budgets, account
payable, the expenditure of the company, the accounts receivable as well as all other
transactions in the organization.
This is a software that are used in different branches of Bell Studio helping the
managers and the clerks to keep a track on the data of the organization. Bell Studio has
different branches and data is generated from different branches and all the data are to
be updated on the centralized system so that they management can get the overview of
the data at every locations of the company. All the records of different branches are
recorded in the centralized system.
The report stated above specifies the working process of Bell Studio describing
the pitfalls of the transaction cycles, management reporting, as well as financial
reporting in the system. The computer frauds in the system of Bell Studio is also
discussed in the following report along with the security measures that can be taken to
mitigate the issues.

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