Strategic Information System for Business and Enterprise

Running head: STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND
ENTERPRISE.
1
Strategic Information System for Business and Enterprise
Risks, Process and the Internal Controls of the Expenditure Cycle
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STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE. 2
Executive Summary
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. In stock control, data streams from different cycles to
the expenditure cycle, for example, the stock control, generation cycle, income cycle, and
different areas of the organization likewise give data concerning the products that Bell Studio
need to purchase. The principal objective of the expenditure cycle is to diminish the total
expense of getting and looking after services, supplies, and stock.
The organization should put more accentuation on their stock control is given any
shortcoming may realize outstanding issues with this procedure. The decision of the technique
for stock control is the central point that influenced the requesting procedure. Bell Studio can
improve the viability and effectiveness of the payment procedure by having the producers or
manufacturers to submit their invoices through EDI because the framework will coordinate their
POs automatically with the receiving reports.

STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE. 3
Table of Contents
Executive Summary.............................................................................................................2
1.0 Introduction....................................................................................................................4
2.0 Modeling Diagrams.......................................................................................................4
2.1 Data Flow Diagram (DFD) of Bell Studio Purchases and Cash disbursements
systems.........................................................................................................................................5
2.2 Data flow Diagram for Bell Studio Payroll System..................................................6
2.3 System Flowchart of Bell Studio Purchases System.................................................7
2.4 System Flowchart of Bell Studio Cash Disbursements System................................8
2.5 System Flowchart of Bell Studio Payroll System......................................................9
3.0 Expenditure Cycle Overview.......................................................................................10
4.0 Expenditure Cycle Business Processes........................................................................10
4.1 Requesting materials, services, and associated supplies.........................................11
4.2 Accepting and Storing Goods..................................................................................12
4.3 Paying for the material and administrations............................................................12
5.1 Ordering Process Risks............................................................................................13
5.2 Dangers in Receiving and Storing Material and supplies........................................14
5.3 Dangers in the payment procedure..........................................................................14
6.0 Conclusion...................................................................................................................15
7.0 Recommendation.........................................................................................................15
References..........................................................................................................................17

STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE. 4
1.0 Introduction
The expenditure cycle can be depicted as an accumulation of exercises related to
purchasing, and payment for services and merchandise. The cycle begins by when an
organization needs some service or merchandise for a regulatory capacity or selling. The
interested party must fill a requisition form giving every one of the subtleties and sending it to
the buying division. Chow et al., (2018) has characterized internal control as a framework that is
related with the contrast lease practices and procedures created by substances that are gone for
verifying resources, improving productivity, guaranteeing the precision of accounting
information data, and estimating the consistency of technique and strategies of the executives.
This report will try to break down the procedures, dangers and internal controls for the
consumption cycle at Bell Studio. Ideally, much attention has been placed on the following
areas: giving the flowchart and information stream charts for the distinctive procedures,
explaining the various activities and procedures that are done in the consumption, the choices
that must be made and the data that is required to settle on these choices, the primary hazard and
dangers in the use cycle, and the interior controls required to address the dangers.
2.0 Modeling Diagrams
In understanding the situation with regards to the expenditure cycle, there is need to
explain the problem logically via the use of system flow charts, and data flow diagrams which
will help in understanding the functioning of the particular system. Diagrams are usually easy to
understand, and they contain much information that a user can use in making developments to
the needed system.

Running head: STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND
ENTERPRISE.
5
2.1 Data Flow Diagram (DFD) of Bell Studio Purchases and Cash disbursements systems

STRATEGIC INFORMATION SYSTEM FOR BUSINESS AND ENTERPRISE. 6
The figure below is a data flow diagram of Purchases and cash disbursements as explained in the case study of Bell Studio.