Adam & Co Case Study: In-depth Analysis of Expenditure Cycle Systems

This report presents a comprehensive analysis of the Adam & Co business, an art wholesaler based in Adelaide, with a centralized accounting system. The report focuses on the company's expenditure cycle, examining the purchase, cash disbursement, and payroll systems. It begins with an overview of conceptual systems and utilizes Data Flow Diagrams and system flowcharts to illustrate the processes. The analysis includes an evaluation of the strengths, weaknesses, and potential risks within each system. The report aims to assist the company's COO in evaluating risks, internal processes, and making adjustments to improve the expenditure cycle. The report covers various aspects of the expenditure cycle, including inventory management, purchase order processes, and cash disbursement procedures, providing insights into potential improvements and internal control weaknesses.