Case Study: Paradise Industry

Case study- Paradise Industry

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Conclusion.................................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
The report is based on two concepts: the spending cycle and the cash conversion cycle.
The graph demonstrates how and when the documents are posted, how many copies need to be
produced for distribution, and how the research under way is managed (Phillips, 2018). Faults
also are discussed and recommendations were provided for the proposed selection phase. The
other word, that is the cash conversion period, refers to the time, the possibility and also to the
entire process.
MAIN BODY
1. System flow chart of expenditure cycle

Analysis- the system flow chart of expenditure indicates that under this chart, there are
two departments purchasing and receiving department. In the receiving department, all types
of inventory functions are managed such as warehouses, computer inventory system etc.
while purchasing department all types of buying activities are included.
1.1 Analysis of physical internal control weaknesses in the expenditure cycle
1. Possible weaknesses Structural weaknesses
The income cycle system: Most RC activities are carried out the over-charged by the investment
advisor (AC), in particular the RC, transactions and processes. The consumer's request is
received and acknowledged, generates files for RC sources, like slips and tender packing, but
also retains the particular stock and receipts for the cash deposits. False intentions can happen
right here. The CA may be inaccurate with the purchaser of the product lines and may
misinterpret the user. The customer may still have more cost, but he keeps track of and assures
about the sale at the very same price.
Expenditure cycle system- In one division, the Group combines identification, approval and care;
distribution, sourcing and stock management (R, P & IC). It is an violation of the division of
responsibilities (Banerjee, 2018). Most EC operations are carried out by R, P and IC in certain
organizational responsibilities, in particular EC, transactions or procedures. This makes
payments, collects structured refunds, evaluates and maintains inventories, and provides a
statistical repository on accounts payable. False behavior could happen here. For example, R, P
and IC staff may have conflicting positions on the seller and may annoy the president / owner;
they may even take unkempt soup (except hard food) and no one will take charge of it.
2. Weaknesses of documentation and commercial actions (methods)
The identification and economic operations of giant eggplants can be at risk throughout
the purchasing cycle: