The analysis has identified the problems

Running head: CASE STUDY – ADAM & CO.
Case Study – Adam & Co.
Name of the Student
Name of the University
Author Note

CASE STUDY – ADAM & CO.1
Executive Summary
This report contains an analysis of the Purchases System, Cash Disbursements System and the
Payroll System that the organisation Adam & Co. has in place. This analysis is initially done
through a diagrammatic representation of all the systems in the form of flowcharts. The
flowcharts also enable a smoother analysis of the processes being undertaken by the company.
Various sources of literature are then referred to get an idea about the ideal systems that every
company should have in place. The analysis has identified the problems associated with each of
the systems. The risks that occur due to these problems are also mentioned in detail. This report
ends with a conclusion which contains the final meaning of all the analysis conducted on Adam
& Co. Some recommendations are also made to improve the processes undertaken by the
company.

CASE STUDY – ADAM & CO.2
Table of Contents
Introduction..................................................................................................................................3
System flowchart of payroll system.............................................................................................6
Description of weaknesses and risks of the purchases system.....................................................7
Description of internal control weakness in the Cash Disbursements System............................8
Description of internal control weakness in the Payroll System.................................................9
Conclusion.................................................................................................................................10
References..................................................................................................................................12

CASE STUDY – ADAM & CO.3
Introduction
Adam & Co. is a Perth based wholesaler of industrial supplies. It imports its inventories
from manufacturers in China, Thailand and Vietnam. It also has a centralised accounting system
which consist of different terminals. The company mainly consists of three accounting systems
called the Purchases system, Payroll system and Cash distributions system. All the systems are
maintained in a systematic manner in accordance with the necessities of the organisation.
Although the system is considered to be robust and satisfying the needs of the organisation, there
may still be a few weaknesses that might be existing within these systems. A visual
representation of the process flows is undertaken for the convenience. An analysis of the existing
systems is done to identify the potential weaknesses that exist within the system and to identify
the measures to rectify them.