Strategic Information for Business and Enterprise

The report discusses the case study of Bell Studio, a wholesaler art service, and analyzes the internal weaknesses and risks associated with its transaction, purchasing, and payroll systems.

Running head: STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
Strategic Information for Business and Enterprise
Name of Student-
Name of University-
Author’s Note

1STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
Executive Summary
The report consist of case study of the Bell Studio which is famous as a whole seller art
service. The company consists of transaction system, the management system and the
report systems that are used for detailing the working processes in the company. The
working process consist of transaction that takes place in the company, the purchasing
process of materials from different other countries and the payroll system about how the
employees are paid in the system and how their data are kept recorded in the system.
The business of Bell Studio carries out its working process with a centralized computer
based system and all the processes are dome manually in the system. This report
states all those related systems and the internal weakness that might occur in the
internal working process of the system. The weakness are defined in this report stating
which risk it might follow.

2STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
Table of Contents
Introduction........................................................................................................................3
Data Flow Diagram of Purchases and Cash Disbursements Systems.............................4
Data Flow Diagram of Payroll System...............................................................................5
System Flowchart of Purchases System...........................................................................6
System Flowchart of Cash Disbursements System..........................................................7
System Flowchart of Payroll System.................................................................................8
Internal Control Weakness and Risk Associated..............................................................9
Conclusion.......................................................................................................................10
Bibliography.....................................................................................................................11

3STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
Introduction
Bell Studio is one of the most famous whole seller of art materials and it imports
materials from different other countries. The company has to store the details of all the
vendors associated with the company for placing the order. The order that by placed by
the purchasing clerk of the company first checks the inventory and then purchases
materials accordingly. All these activities are carried out manually.
The Bell Studio incorporates all the activities done manually. The transaction
process, the financial reporting process and the management process is explained in
this report with the help of data flow diagrams. The diagrams states how the working
process is being carried out by the system of Bell Studio. There are data flow diagrams
depicting the flow of data in the system. There are system flowcharts that shows how
the three sub-systems works in the system.
This report also details the weakness that each sub system includes while
dealing with the process. As the working process is carried out manually, there are
many flaws in the system of Bell Studio. The company needs to finds out those internal
weakness and the risks associated with the weakness. As a business analyst of the
company, this report is written to the Chief Operating Officer so that the risks associated
with the working process can be evaluated. The detail of the business process is
detailed below in this report.

4STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
Data Flow Diagram of Purchases and Cash Disbursements Systems
Figure 1: Data Flow Diagram of Purchases and Cash Disbursements Systems
(Source: Created By author)

5STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
Data Flow Diagram of the Payroll System
Figure 2: Data Flow Diagram of Payroll System
(Source: Created By author)

6STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
System Flowchart of Purchases System
Figure 3: System Flowchart of Purchases System
(Source: Created By author)

7STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
System Flowchart of the Cash Disbursements System
Figure 4: System Flowchart of Cash Disbursements System
(Source: Created By author)

8STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
System Flowchart of Payroll System
Figure 5: System Flowchart of Payroll System
(Source: Created By author)

9STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
Internal Control Weakness and Risk Associated
System Internal Control
Weakness
Risk Associated
Purchasing System 1. The process is
dependent on the
purchasing clerk of the
system.
1.1 The system takes long
time to complete the work
and as there might also be
human error if the clerk
makes some mistake.
(Hockerts 2015).
2. The purchasing process
or the management
process is too slow.
2.1 There might be a risk
of not satisfying customer
demand as because the
ordering of products are
not automatically. If the
clerk is not available for
some reason, that might
lead to stop the purchasing
material in the system.
3. Handling of files and
documents is another
internal weakness of the
system (Haynes 2015).
3.1 As the files and receipt
are taken from one
department to another,
there might be human
error of missing the file.
The receipt might not be
handled properly when
needed for cross check.
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

10STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
Jones 2016).
3. Cheque might be
misplaced and there can
be wrong value written on
the cheque (Woerkom et
al. 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.
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 (Korableva and
Kalimullina 2016).
2. The payroll clerk makes
copies of registers and
files and while coping the
contents, there might be
some mistak (Wellin 2016).
2.1 Risk that is involved is
the human risks that might
occur while making copies
of the register and
cheques (Safari, Faraji and
Majidian 2016).
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
(Luftman, Lyytinen, and Zvi
2017).
Conclusion
The above reports states the business transaction process, management
process and the purchasing process of the operation methods carried out in Bell Studio.
As mentioned above, Bell Studio is one the most leading company of art supplies and
imports materials from all over the world. The company presently deals their working
operations manually and has a centralized accounting system for managing its
businesses. The company also handles its data manually by maintaining files for each
department and process. The files are manually transferred from one department to
another.
The report above shows the data flow of the transaction process, data flow of the
purchasing process and the data flow of the management process that is carried out by

11STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
the centralized accounting system. This report also states the details of the system
flowchart of all three systems in the organization.
As the organization carries out centralized accounting information system, there
are many flaws that the company has to deals with. The weakness that might occur in
the system are human risk, monetary risk, security risk and many other. All those risks
are explained in this report stating the details of the risk and the internal weakness that
is occurred in the organization because of the accounting information system.

12STRATEGIC INFORMATION FOR BUSINESS AND ENTERPRISE
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