Data Flow Diagrams of Purchasing and Cash Disbursements Systems at Bell Studio

This study explores the data flow diagrams and system flowcharts of purchasing, cash disbursements, and payroll systems at Bell Studio. It discusses the internal control weaknesses and risks associated with these systems.

Running head: STRATEGIC INFORMATION SYSTEMS
Strategic Information Systems
(Bell Studio)
Name of the student:
Name of the university:
Author Note

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Executive summary
In the following study different data flow diagrams of purchasing and cash of various
distributed systems at Bell studio is demonstrated. Next, various kinds of data flow diagram
of different systems of payroll, purchasing the systems of flowcharts are also evaluated.
Further, multiple system flowcharts regarding cash distribution system are also
demonstrated in this study. At last, multiple weaknesses of all the risks and systems to find
the weaknesses are further highlighted in the report.

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Table of Contents
1. Introduction:.....................................................................................................................................3
2. Illustrating data flow diagram of purchases and cash disbursements systems:...................3
3. Data flow diagram of the payroll system:....................................................................................5
4. System flowchart of purchases system:......................................................................................6
5. System flowchart of cash disbursements system:....................................................................8
6. System flowchart of payroll system:............................................................................................9
7. Demonstration of internal control weakness and risks related to the weaknesses:..........10
8. Conclusion:....................................................................................................................................11
9. References:...................................................................................................................................12

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1. Introduction:
The Bell studio is an inventory business that has been sourcing the resources from
various manufacturers. Their manufacturers are located at New Zealand, Japan, China and
Australia. Their organization consists of centralized accounting systems having various
networked terminal in various locations.
In this report various data flow diagrams of cash and purchasing of distributed
systems are evaluated. Then different data flow diagram of various payroll systems,
purchase systems of system flowchart are analyzed. After that different system flowchart of
cash distribution framework are discussed. The, the system flowchart of the payroll
systems are evaluated. Lastly, different weaknesses of every system and risks regarding
the determine weaknesses are described.
2. Illustrating data flow diagram of purchases and cash disbursements systems:
Figure 1: “Data flow diagram of purchases and cash disbursements systems”

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(Source: Landgraf, 2015, p. 157)
The above diagram highlights how Bell studio’s has required its cash distribution
system. It has been securely and efficiently handling the cash payment of the company.
The A/P or accounts payable is been tied closely to various cash disbursements. Here,
most of the transactions are been found to be processed with the A/P as the payment
through cash are made. Here, suitable documentation is an essential element of the
function of cash distribution.
Here, the cash disbursements has been recorded on the financial records of the
financial records of the company. Further, the presence of efficient internal controls to
approve the payments on the creditor and vendor transactions are done. Then, in the
transaction documentations there are invoice payments (Gibson, 2017). Here, the inventory
are been purchased and the transaction must consist of the invoice. Next, regarding
transaction recording, the receiving and purchasing of the item of value with particular price
is involved and is recorded as the credit towards the cash amount or liability. Further,
regarding internal controls, the cash disbursements has been vital to secure the loss of the
cash. The /P staffs has been ideally not in charge to the disbursements of the cash. This is
to secure the payments of various transitions that are valid (Pearlson, Saunders & Galletta,
2016)

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3. Data flow diagram of the payroll system:
Figure 2: “Data flow diagram indicating the payroll system”
Source: (Thibierge & Beresford, 2015, pp. 8-46)
The DFD level 2 has gone a step further. It has required high functionalities of the
Payroll for reaching the needed level of details regarding the functioning of payrolls. The
above DFD comprises of employee, attendance, leaves, salaries, tasks and pay slips.
Further, various low level of functionalities of the payroll management systems has
comprise of different admin logins to the system. This is to manage the functionalities over
the system of payroll management. Here, the admin is able to add, edit, view and delete

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the records of the department, tasks, eave and employee. Besides, they are able to control
every details of the pay-slip, salary and attendance (Gibson, 2016). Moreover, they are
able to deploy the various levels of filters to the report of task, salary and employee.
Further, the admins can track the detailed data regarding task, salary, leave and
attendance.
4. System flowchart of purchases system:
Figure 3: “System flowchart of the purchasing system”
Source: (Ariana & Bagiada, 2018, p. 012102)

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The procurement and purchasing flow chart is helpful to determine how often has
the payment of vendors has been getting delayed. This has been regarding unfinished
approvals and missing the order of purchases. It is helpful for the employees of Bell studio
to analyze exactly how to make the procurement and purchasing process has been
working. The above flow chart provide the typical process. This is to modify the layouts at
various steps of the process of the company. One can also link to various internal forms,
approved vendors and email addresses for different individuals who are included in the
process (Hall, 2015). Various procurements has been involving various processes to select
the vendors, deployments of various payments terms, selection and strategy vetting,
negotiations of contracts. This is the real purchasing of goods. Here, the procurement has
been concerned to acquire the procuring of all kinds of goods, works and survives that is
essential for Bell studio. The above flow chart is helpful to determine the crucially of the
strategy. The diagram helps in understanding what does the company has been performing
and standing for (Ahmed, 2016).
Apart from this, the beliefs has been informed to the business model. It is helpful to
marker placement, the customers, the necessities that are required and what they has
been believing in. Then the capabilities of the Bell studio are to be identified. This is helpful
to determine the weaknesses and strengths. Then, the ways the strengths has been
supporting the long-term aims are to be determined. Lastly, the ways they require to
develop can also be determined. Next, the management issues are to be found out. This
involves how one require to develop or hire the talent that can lead to the aims. Next, the
ways in which Bell studio have the resources are required to gain the goals are to be
determined. For Bell studio, the company identify and procurement is intertwined ( FEES,
2015). As the business is related to the identity across the environmentally conscious
ethics, the procurement strategy has been reflecting to that decisions. It is also understood
that the policies must be in place for assuring that Bell studio has been sourcing from
various organizations having same ethics. The placement of market has been reflecting to
the branding. Here, the clients has been attracted to the practices and philosophies of
business uses. They have been seeking the business where the values has been reflecting
to their own.

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5. System flowchart of cash disbursements system:
Figure 4: “System flowchart demonstrating cash disbursements system”
(Source: Thibierge & Beresford, 2015, pp. 239-266)
The above flowchart is helpful to understand the primary functions and definitions of
the AP/CD processes. They are useful to know the relationship taking place between the
environment and AP/CD process. It is also useful to gain the reasonable level of analysis of
the physical and logical characteristic of the typical AP/CD processes. This is helpful to be
familiar with different technologies that can be utilized for deploying the AP/CD methods.
The flowchart spotlights on Bell studio. This involves the processes of AP/CD or accounts
payable and cash disbursements. This is to explore the controls, systems and processes
that must be in place for assuring the AP/CD processes (Adambaevna, 2016).
This must be operated effectively and efficiently. Apart from this. The diagram has
been examining particular procedures of process control and helpful to assure every
payable accounts that are to be paid in timely way. Moreover various process definitions
different functions are understood from here. The AO/CD process can be seen as the
interacting structure for the controls, methods, equipment designed for accomplishing the
basic tasks. It is helpful to control the constant work routines of the department that are
account payable. Here, the cashier has been supporting the necessities of decisions for the

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people managing the department of accounts able. This is to generate the external and the
internal reports (Jepperson, 2016).
The cycle of the cash disbursement has constituted through the part of accounting
process of the business. Various resources of business accounting has been taking into
consideration of the cycles as the method in and of by itself. However, the others has been
rating that to as the part of bigger process of accounting. To evaluate the cycle entails the
investigation of the purpose, steps of the measures and different employee who are
included in the procedure. Here, the CFO or Chief Financial Officer of Bell studio has been
useful to set the procedures of cash disbursements into corporations (Adrian-Cosmin,
2016). Apart from this, the cash disbursement cycle is seen as the method through which
the Bell studio can manufacture the processes to various goods regarding commercial sale
having the resources of cashes. Here, the overall method has been depending highly on
various approval and decisions for the accounting department of Bell studio. Under the
bureaucratic in large business, the cycle of cash development includes various handful of
departments. This also involves the productions, receiving and purchasing. Apart from this,
the cash disbursements has been including the physical cash along with different resources
of cashes like lines and checks of credits.
6. System flowchart of payroll system:
Figure 5: “System flowchart of payroll system”
(Source: Thibierge & Beresford, 2015, pp. 239-266)
To create the above flow chart time cards are collected regarding compliances.
Here, the supervisors has been contacting various questionable or missing time cards. This

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is helpful to manually measure the cards of time. Here, a sequence is to be created that
includes the duties of payroll. This includes the manual calculation of wages and various
statutory deductions. The flow chart is meant for Bell studio’s computerized system that is
in-house. It eradicates the processing which is manual. The data of time-keeping must be
uploaded to the system of payroll, evaluate the missing scans, review the data for
timekeeping (Lessambo, 2018). It should be through payroll software, report that is printing
pre-processing, payroll of double-check through pre-processing report. The flowchart is
designed such that it is relevant all the processing of payroll. Here, the flowchart is to be
upgraded as any change takes place in the system of payroll. Apart from this, the flow chart
must involve Bell studio’s state and federal payroll obligations of taxes. This involves the
reporting, payments that involves the W-2 processing (Grace & Davis, 2019).
7. Demonstration of internal control weakness and risks related to the weaknesses:
Weakness in cash disbursements systems:
First of all, there is accountability. This indicates to the security of internal controls
and the capability in withstanding the misuse and misconduct. While dealing with bigger the
cash disbursements and other kinds of fraud or theft are the probabilities. Here, the internal
controls comprises of erroneous tracking systems and problems with ineffective functions
of accountability. Next, there are issues with continual adaptation. It can be said that the
disbursements of cash are made rarely in the similar way for the complete life of the
business. Here, the processes and systems of approval changes has been shaping the
company and consisting of the development of latest technology (Gibson, 2016). Apart
from this, the measures of security has been able to alter all the channels with the help of
moves of cashes. Here, the new regulations of government has been also including extra
steps. After that, there are missing of controls and particular situations. As the internal
controls are never regulated through an external authority. There has been also scopes
where some important controls can be skipped over (Pitkänen, 2016). Here, for instance
the Bell studio can possess detailed controls for all the types of cash disbursements
regarding the normal business projects. However, they can be at loss as disbursement f
considered for the latest grant program. This is simply because the rules are not generated
for the situation. These blind spots has been leading to further issues with improper
measures.
Weakness of purchases system:
The department of purchasing at Bell studio must be knowing how must the
inventory has been at any particular time. This is helpful such that the services and
products never stop. This is because of the lack of various raw materials. As there are
various elements of process of purchasing, that might be wrong, the departments should
have some of the weaknesses that are been addressed often in due time. The internal
controls might never independently check the stock against the requisition of purchasing
that might result in overstocking. Here, the sequence of the orders has not be accounted
that involved the various orders that are cancelled (Hall, 2015). This results in misplacing of
orders and devoid of transaction of purchase. Further, the suppliers has been selected on
the basis of previous reputations and no other vital factors like delivery time, terms and
prices. Here, all the incoming goods involves the specific resources that are never cleared
with the help of effective inwards. Further, the discrepancy taking place between the

11STRATEGIC INFORMATION SYSTEMS
delivery docket and orders are to be approved by the manager of Bell studio. Here, no
second person should be there for the authorized approval as the manager is absent. Here,
no independent type of checking must be done to purchase against those ordering (Ahmed,
2016). Further, various checking of the comparisons must never be made on getting the
records and inspecting the reports with smart outcomes having no guarantee of the items
that are gained for smart conditions. Here, the officer of purchasing has been depending on
the personal knowledge and no verifiable independence list of price has been assuring that
the price of the suppliers has been accurate. Further, the recording of the prices has been
not be overstated o understated. Part from this, no suitable proofs are there in invoicing the
indication of different internal checks that are to be done.
Weakness of payroll system:
The first issue is regarding the entering of the data of payroll time. It is seen that the
payroll systems has been using the distinct codes of the employees and additional
processes to identify the assurance that the staffs has reported their individuals working
hours. Next, there can be lack of the payroll systems. Before recessing the pay checks, the
payroll systems has been producing various set of reports. This can be seen as the
accuracy prior the live checks gets printed with activating the direct deposits (Press, 2015).
The preview of the payroll must be performed by the department and employee. This must
be other than those who are liable for the processing of payroll. Besides, the terminated
staffs has been receiving the pay checks. This includes the inordinate quantity of time. This
refers to the manipulation of data and processing errors. As legitimate errors has been
happening, there are many deliberate attempts to made for diverting the funds that can go
unnoticed instead of any time out for the fast audit. Lastly, there can be risk regarding the
lack of systematic audits internally (Landgraf, 2015). Apart from this, the finance or
accounting department must be training the staffs. This is for conducting the audits of
payrolls in quarterly manner. For Bell Studio, most of the staffs has been successfully
embezzling huge quantity of money for doing that in due time. Here, the periodic publicized
audits of the accounting and payroll functions has been useful to deter the dishonest staffs.
This from setting up the scheme for defrauding the staffs and decrease the economic loss.
8. Conclusion:
The above study shows how the various strategic information systems has been
working well for Bell Studio. It is helpful to evaluate the latest information as far as
promotion, production and market of the services and product are concerned. This is
related to the strategies of business and helps Bell studio to include the data base enabled
through data mining. This is helpful to save time and provides the smartest way for using
then for developing processes of business of Bell Studio. This is helpful for the users for
underlining the procedures of data collections. Thus it can eradicate the opportunities of
markets. Here, the features are vital for Bell Studio to grasp the current scenario in the
market and achieve the competitive benefits. Then, the present market trends are to be
permitted for permitting Bell Studio in involving the innovation. This is to deliver same types
of services and products.

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