Case Study: Strategic Information Systems of Bell Studio (HI5019)

This report provides a detailed analysis of the business systems employed by Bell Studio, an Australian art product company. The report examines the strategic information systems, focusing on the purchase system, cash disbursement system, and payroll system. It includes flowcharts illustrating each system's processes. Furthermore, the report identifies internal control weaknesses within these systems, such as report distribution and inspection process issues in the purchase system, and inappropriate controls in the cash disbursement system. The analysis also explores the risks associated with these weaknesses, including consumer dissatisfaction, increased response times, and inappropriate business procedures. The report concludes by summarizing the key findings and implications for Bell Studio's operational efficiency and risk management.

Running head: BUSINESS SYSTEM FOR BELL STUDIO
Business System for Bell Studio
Name of the Student
Name of the University
Author Note

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BUSINESS SYSTEM FOR BELL STUDIO
Executive Summary:
The main aim of this report is analysing the strategic information system and the benefits
of it. For the discussion of strategic information system in this case the Bell Studio case
study has been analysed. In this document purchase system and the cash disbursement
of the Bell Studio has been discussed and with that payroll system of the Bell Studio is
also analysed. This organization is also having some internal control weakness which has
been discussed in this report. Demonstration has been provided by illustration of proper
diagrams.

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Table of Contents
Introduction:...........................................................................................................................3
Purchase System with Cash Disbursement System of Bell Studio:......................................3
Payroll System of the Bell Studio:..........................................................................................4
Flowchart of the Purchase System within Bell Studio:..........................................................5
Flowchart of the Cash Disbursement System within Bell Studio:..........................................6
Flowchart of the Payroll System within Bell Studio:...............................................................8
Internal Control Weaknesses:..............................................................................................10
Purchase System:............................................................................................................10
Purchase System Risks:..................................................................................................10
Cash Disbursement System:............................................................................................11
Cash Disbursement System Risks:..................................................................................11
Payroll System:................................................................................................................11
Payroll System Risks:.......................................................................................................12
Conclusion:..........................................................................................................................12
References:..........................................................................................................................13

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Introduction:
In the current generation the businesses has seen a huge growth in terms of
management and operations. Most of the businesses utilises some advanced technologies
for managing their daily business routines (Scarborough 2016). Strategic information
system is one of them which is used for managing the current business scenarios. It can
help to manage the business very much effectively.
In this report context, a strategic information system will be discussed considering
the organization Bell Studio. Bell studio is an organization which is currently operational in
Australia and their main business products are art related products. For managing the
accounting system of them, Bell Studio has leveraged a centralised type system which is
capable of processing all of their transactional related operations including payroll system,
purchase system and the cash disbursement system. This report will consist a brief
discussion of systems. Following discussion of this systems of bell studio internal control
weaknesses presented in this systems will be identified and discussed.
Purchase System with Cash Disbursement System of Bell Studio:
The purchase system and the cash disbursement system are the heart of any type
of business related transaction system. Thus this type of system is very much important for
management of the businesses in terms of accounting (Hart 2016). In this aspect Bell
Studio is also utilising a purchase system in which the cash disbursement is also
integrated. Through this system currently the Bell Studio is capable of managing all the
information which raises while a customer purchases products form their organization.
This purchase system and the cash disbursement system is not only helping the Bell
Studio for management of the information but also this system is helping the customers to
purchase the products in an effective manner. By proper management of the existing
purchasing system, the Bell Studio is also able to manage other processes in the
organization effectively.
Considering the cash disbursement system in the Bell Studio it is actually an
important part of the overall purchase system of Bell Studio. The operations that are
related with the cash disbursement procedures are mainly handled by this presented cash
disbursement system in the Bell Studio. This actually also provides a secure environment
for the cash disbursement related operations. There are various of important functionalities
that are provided by this cash disbursement system. This cash disbursement system of
Bell Studio properly manages functions regarding accounts payable, transaction recoding
and proper documentation of implemented transaction within organization.

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(Figure 1: DFD of Purchases and Cash Disbursements System)
(Source: Created by Author)
Payroll System of the Bell Studio:
The payroll system mainly focuses on almost everything that it need to perform for
the payments of the employees and for filling the taxes of the employees (Haruna, Joseph
and Samson 2015). This process includes calculation of the wages, keeping track of the
employee work hours, any type of deductions, withholding taxes and delivering checks.
For an overall accounting system the payroll system is very much important which has
been leveraged by the Bell Studio so that they can deliver the salaries of the employees
timely. Regarding the operations of the Bell Studio this payroll system provides lots of
functionality. The important functionalities which this system consists are the payroll
register review, creating disbursement voucher, review of this created voucher and the

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payroll registration. This payroll system of the Bell Studio also preserves some important
information regarding payroll and the vouchers within the system.
(Figure 2: DFD of Payroll System)
(Source: Created by Author)
Flowchart of the Purchase System within Bell Studio:
The purchase system of the Bell Studio is utilized for purchasing of services and
products from purchase and requisition through the payment and product receipt. In this
aspects a flowchart has been presented for clear demonstration of the purchase system
within the Bell Studio.

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(Figure 3: Flowchart of Purchase System)
(Source: Created by Author)
Flowchart of the Cash Disbursement System within Bell Studio:
Cash disbursement system is very much important for every organization whether it
is small or larger secure handling of the cash payment of the organization. One of the most
important aspects of the cash disbursement system is the accounts payable. This is
important aspects of the cash disbursement system as most of the transactions are
processed through the accounts payable while there is a request of cash payment. The
following flowchart will demonstrate how the transactions of cash takes place within the
Bell Studio.

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BUSINESS SYSTEM FOR BELL STUDIO
(Figure 4: Flowchart of Cash Disbursement Flowchart)
(Source: Created by Author)
Flowchart of the Payroll System within Bell Studio:
As mentioned earlier the payroll system is the actually utilised for the clearing the
salaries of the employees within the organization, this holds quite importance within the
environment of Bell Studio. The below presented payroll system is also focusing in the
same aspect of clearing the salaries of the employees timely in an appropriate way.

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(Figure 5: Flowchart of Payroll System Flowchart)
(Source: Created by Author)
Internal Control Weaknesses:
The internal control defines that auditing and accounting process which assures
objective and effectiveness of the organization. Thus in this aspect internal control is
important concept for the Bell Studio for management of their daily operations in an
effective manner. Here, it has been assessed that there are several of weaknesses that
are presented in the internal control of the Bell Studio and this weaknesses are presented
in all the system of the Bell Studio which is discussed in the below section.
Purchase System:
Some crucial deficiencies are presented within the purchase system of the Bell
Studio. These deficiencies are discussed in the following section.
Report Distribution:
Distribution of the reports is quite challenging in the Bell Studio. It has been
assessed that the Bell Studio is facing problem regarding distribution of the purchase
related reports within the organization as currently the Bell Studio is consisting several of
departments. It takes quite a long time for distribution of this reports within all the
department of the Bell Studio. As this process takes a quite long time there is an overall
delay in the purchasing system of the Bell Studio. Due to this factor the other operations
within the organization gets hampered and failed to execute properly (ole Narikae,
Namada and Katuse 2017). For this deficiency regarding production also occurs within the
system. For all of these negative implications distribution of the reports is considered as
one of the main weakness in the system of Bell Studio.
Inspection Process:
Similar kind of weaknesses are also occurs due to the inspection process that is
leveraged within the Bell Studio organization. Here the inspection process mainly defines
the inspection of products. The product inspection is done in almost all production line to
find out the defective products in the production line so that quality of the production can
be managed. In this case this inspection factor is creating a problem which becomes the
internal weakness within Bell Studio. The problem is arising within the Bell Studio as this
process of inspection is getting lengthier like the problem of report distribution. As the
inspection process of the products is becoming lengthier it is quite obvious that the
production time of creating the products will also increase (Sarkar and Saren 2016). This is
the main reason that the distributors of the products will get the products quite late and for
this customers will also get the products late. Production of the products are also getting
late as the current batch of the products need to wait until production of the previous batch
is getting finished. For this reason Bell Studio is not able to provide the maximum of
production. This is one of the major weaknesses in the Bell Studio organization.
Purchase System Risks:
For the above identified weakness the purchase system of the Bell Studio is facing
several kind of risks. These risks are discussed in the following section.
Consumer Dissatisfaction:
Dissatisfaction of the consumers is one of the major risks for the Bell Studio due to
both the identified weaknesses. From the weaknesses it has been identified that the Bell
Studio is facing manufacturing related problems and for this reason their total capacity of
manufacturing is lowering and they are not able to provide the products to the customers

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timely (Hill and Alexander 2017). This is creating dissatisfaction among the customers as
they are not getting the products whenever they want. Thus this actor of dissatisfaction
among the customers need to be mitigated for an effective operation within the
organization.
Increased Time for Response:
From the weakness of report distribution factor it has been identified that the Bell
Studio is taking usually a long time for responding to some queries. As the review of the
reports are getting delayed time of response is also increasing with that. Due to the
increased response time other important processes of the organization is getting delayed
and this is creating an overall risk for the Bell Studio as the business functions are not
managed properly.
Cash Disbursement System:
In this aspects cash disbursement system of the Bell Studio is having some internal
control weaknesses. In the following section these weaknesses are discussed.
Inappropriate Controls:
The developed cash disbursement system for the Bell Studio is capable of
managing the flow of the case. In this case though there is a well-developed cash
disbursement system but control related issues is present as no proper authority is
currently present for handling this cash disbursement system. As there is no proper
governing body for handling the cash disbursement system, ultimately this system for the
cash disbursement is becoming obsolete. Thus a proper governing body need to be
represent here for handling the system of cash disbursement.
Cash Disbursement System Risks:
From the above identified internal control weaknesses it has been assessed that
there are some risks present regarding cash disbursement system. In the below section
the risks related with the cash disbursement system is discussed.
Inappropriate Procedures of Businesses:
From internal control weaknesses of the cash disbursement system it has been
assessed that there is no proper authority for management of the cash disbursement
system. This factor is carrying a major risk for the Bell Studio. As there is no proper
authority for management of the cash disbursement system the employees at the lower
level in the cash disbursement system are not getting proper assistance. This factor is
leading to the inappropriate type of business related procedures as guidance of actual
procedures are not provided. For this reason various of errors is occurring the Bell Studio
and risk related with the business procedures are occurring.
Payroll System:
Considering the payroll system of the Bell Studio, it is also facing some specific
weaknesses. In the following section the major weaknesses in the payroll system is
discussed.
Reconciliation:
The reconciliation factor is creating some specific type of weaknesses in the Bell
Studio. Reconciliation is done within the Bell Studio for the overview of functionalities
related with the working payroll system (Zhu and Wang 2019). This is done by higher
authorities present in organization, but due to this factor salaries of the employees getting
blocked in often cases which is one of the major weaknesses in this aspects.