HI5019: Bell Studio Strategic Information Systems Case Study

This case study analyzes the strategic information systems of Bell Studio, an Adelaide-based wholesaler. The report examines the purchase system, cash disbursement system, and payroll system, including their functionalities, system flowcharts, and data flow diagrams. It identifies internal control weaknesses within each system, such as lengthy inspection processes in the purchase system and time card review delays in the payroll system. The study also highlights major risks associated with each system, including risks related to cash flow in the cash disbursement system and financial reporting in the payroll system. The analysis concludes with recommendations for improving system efficiency, such as implementing better controls and streamlining processes to address the identified weaknesses and mitigate the risks. The report emphasizes the need for effective management of the systems to enhance the overall performance of Bell Studio.

Running head: BELL STUDIO STRATEGIC INFORMATION SYSTEMS
BELL STUDIO STRATEGIC INFORMATION SYSTEMS
Name of the Student
Name of the University
Student Number
Author Note

1BELL STUDIO STRATEGIC INFORMATION SYSTEMS
Executive Summary
The main purpose of this assessment is to determine the main activity that takes place
within the system of Bell studio. The Bell studio organization is an organization that
aims at manufacturing inventories for the main countries that are Australia, Japan,
China and New Zealand. The objective is to analyze the centralized accounting system
that is being implemented within the bell studio. The report will focus on describing the
purchase system, cash disbursement system and payroll system. In addition to this the
report will also include the major issues that are faced with the working of these
systems. The internal control issues associated with each system are also described so
that it becomes easy to recommend effective ways for solving the problems.

2BELL STUDIO STRATEGIC INFORMATION SYSTEMS
Table of Contents
Introduction........................................................................................................................3
About the Bell studio’s system functioning........................................................................3
Functioning of purchase system....................................................................................3
Functioning of cash disbursement system.....................................................................3
Functioning of payroll system........................................................................................3
Cash disbursement system and payroll system DFD....................................................4
Payroll system DFD.......................................................................................................5
System flowchart of purchases system.........................................................................6
System flowchart of cash disbursements system..........................................................7
System flowchart of payroll system................................................................................8
Internal control weakness associated with the purchase system.....................................9
Internal control weakness associated with the payroll system..........................................9
Internal control weakness associated with the cash disbursement system......................9
Major risks associated with cash disbursement system..................................................10
Major risk associated with purchase system...................................................................10
Major risks associated with the payroll system...............................................................10
Recommendation.............................................................................................................10
Conclusion.......................................................................................................................11
Bibliography.....................................................................................................................12

3BELL STUDIO STRATEGIC INFORMATION SYSTEMS
Introduction
Bell studio is an organization that is an Adelaide based wholesaler that aims at
supplying the inventories. The main sources of these inventories are from the
manufacturing countries China, Japan and Australia and New Zealand. The main
systems that are associated with the organization are purchase system, cash
disbursement system and payroll system. As a business analyst it is important to review
all the working of the system so that it becomes easy to understand the performance of
the system. There is a high need to manage the activities and functioning that are
associated with each system so that it can offer better results towards the organization.
The main role of a business analyst is to understand the present condition of the system
so that it becomes easy to evaluate the functioning of the system.
About the Bell studio’s system functioning
Bell studio is among the organization that needs to have proper business
solutions so that they can develop a better analysis of problems in order to provide
better benefits towards the organization. As a business analyst it is becomes essential
to highlight the main issues that are faced by the system and to advice better solution
for overcoming this situations. This will help in managing the requirements effectively so
that it can directly fulfill the needs of the organization.
Functioning of purchase system
The main function that is being performed by the purchase system is to file the
purchase order effectively so that it can be further processed towards the cash
disbursement system. The process related to purchase system gets executed with the
preparation of inventory subsidiary ledger. The main reason behind developing
subsidiary ledger is that it helps in checking the inventory and checks whether all the
items are available in the stock or not. The clerk of purchase system is responsible for
selecting an appropriate vendor that will provide the supplies. The process stops once
the purchase order copy is sent towards the cash disbursement department. The
invoice statement is sent towards the cash disbursement system. The order copy can
be maintained properly for processing the further activity.
Functioning of cash disbursement system
The main functioning that is performed by the cash disbursement system is that
once the receipt is being processed from accounts payable department than the cash
disbursement clerk files a document until the payment is being processed. After these
the clerk prepares a cheque for invoice account so that they can send it towards the
treasure. After these the clerk of cash disbursement updates the cheque registers and
accounts payable clerk. Lastly the receiving clerk ensures that invoice is filed within the
department.
Functioning of payroll system
The payroll system aims at calculating the employees working hours for the
purpose of processing the payment. The supervisor focuses on reviewing the time cards

4BELL STUDIO STRATEGIC INFORMATION SYSTEMS
so that they can process correct amount of payment towards the employees. Thus it
becomes essential to ensure proper processing is done towards the payment. It is the
responsibility of payroll clerk to file time cards with the payroll department and ensures
that the employee pay cheques are being processed to different supervisors for the
purpose reviewing the department employees. After this the payroll clerk ensures that
the copy of cheque is processed towards the payroll department. The clerk further
shares the payroll register for the purpose of entering the payroll details within the bank.
After these the accounts payable clerk is responsible for the purpose of reviewing the
payroll register and ensures that a proper disbursement voucher is being prepared.
Lastly the clerk posts the general ledger and ensures that all data are stored effectively
within the payroll register department.
Cash disbursement system and payroll system DFD
The data flow diagram of cash disbursement system and payroll system includes the
main entities that are vendor, treasures, accounts payable clerk, receiving, purchase
clerk, and cash disbursement clerk.

5BELL STUDIO STRATEGIC INFORMATION SYSTEMS
Payroll system DFD
Data flow diagram is used for the purpose of describing the tasks and activities
that takes place within the payroll system. The major entities that are associated with
the system are payroll clerk, staffs of the organization, ledger clerk and accounts
payable clerk.

6BELL STUDIO STRATEGIC INFORMATION SYSTEMS
System flowchart of purchases system
he system flowchart is used for describing the process associated with purchase
system. The purchase system checks the inventory and goods that are received so that
it becomes easy to maintain the process. Finally the system stops it processes once the
report of received from vendor.

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System flowchart of cash disbursements system
The system flowchart for cash disbursement starts the execution process by
documenting the accounts payable amount that is received from the system. Once all
the process gets completed than the cheque is processed towards the employees and a
cop of this cheque is maintained with the register for the purpose of future reference.

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System flowchart of payroll system
The system flowchart for payroll system is being developed for the purpose of
ensuring proper analyses of time cards are being done by the employees. This also
involves reviewing the time cards before processing the payment towards the
employees. The process finishes its work by providing the payroll register with a copy of
cheque.

9BELL STUDIO STRATEGIC INFORMATION SYSTEMS
Internal control weakness associated with the purchase system
The main function that is performed by the purchase system of Bell studio is that
it focuses on the payments that are made towards the vendor so that they can process
the requirements from vendors. The major issues that are faced with purchase system
are that the lengthy inspection process effects the delivery and effects the vendors.
Once the items are delivered towards the purchase department it is being reconciled by
receiving clerk so that it becomes easy to check whether all stuffs are successfully
entered within the stock or not. This process is a lengthy one and hence it tends to
impact the performance of the system. The bell studio still works on maintaining hard
copies manually and transferring them to different departments this eventually impact
the working process as maintaining the cheques is a difficult task to do. This has the
ability to impact the payment process as the paper work increases and hence the time
required to complete the process will also increase.
Internal control weakness associated with the payroll system
The main internal weaknesses that are identified with the payroll system is the
processing of payment towards the employees. Processing payment is one of the
important aspects and hence it needs to be done effectively so that it does not cause
any error. Before processing the payment towards the employees it is observed that the
time cards are reviewed by different departments. Reviewing the time cards and
verifying it with employees involves a huge time and hence it has the ability to impact
the performance off the organization. These increases the wait time for the employees
and hence the trust issue increases among the employees. This will eventually end up
harming the relation maintained between the employees and organization. The
involvement of huge number of employees and staffs affects the processing and
increases the time. Hence it is important to ensure that a proper and effective
supervisor is being appointed who will be able to view the data. There is a high need to
understand the performance. Proper supervising capability will help in the process of
execution. One more weakness that is identified with the working of the payroll system
is that the periodic reconciliation. This tends to impact the accounting system and also
involves huge time and hence it becomes essential to ensure proper working throughout
the system.
Internal control weakness associated with the cash disbursement
system
Cash disbursement system works for providing a better control over the cheque
that is being processed. It is observed that the cash disbursement system of bell studio
lacks in control that eventually end up harming the performance of the system. Improper
control over the functions is the major internal weakness that is aced with cash
disbursement system. Apart from this there is no proper external authority for supporting
the organization and the process that takes place within the organization and hence it is
observed that it tends to impact the processing of the system. These internal weakness

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will impact the overall performance and will eventually lead to hampering the
performance of the organization..
Major risks associated with cash disbursement system
Cash disbursement system mainly focuses on understanding the cash flow within
the system. The main risks that are associated with cash disbursement system is that it
affects the performance of the system. Hence it is important to ensure that proper right
is provided towards the user so that only effective user can have access over the data.
Major risk associated with purchase system
The risk that mainly comes with the purchase system is that there is no proper
control over the response systems. This effects the processing time of bell studio and
hence the output gets affected. Thus it becomes essential to ensure that property
process review is being done. In addition to this it is observed that the response time of
the system increases with the increase in performance and process. This impacts the
process and eventually ends up increasing the purchase system processing. The
development process hence gets impacted with the activities and also harms the
organization reputation.
Major risks associated with the payroll system
The risks that are associated with payroll system include the problems with
financial reporting and managing the structure of payment. It is observed that the wait
time for employee’s increases as the time needed to process the payment increases. It
is important to process the payment once it is being reviewed by different department
people. This impacts the processing of the system and also effects the relationship
maintained between the organization and the employees.
Recommendation
After analyzing the internal control weakness within the report it can be stated that
there is a high need to have proper control over each system so that it can perform
tasks efficiently. The ways in which issues can be solved within the systems are as
follows:
 In order to overcome the lengthy process it becomes important to have proper
supervisor who will perform the reconciliation of each steps rather than reviewing
by different employees for the same matter.
 Reviewing the process and approving the process will provide the surety and will
ensure that the transaction is performed effectively.
 Implementing automated time cards will reduce the chances of fraud and the
need of reviewing time cards will also reduce. This will increase the efficiency by
improving the activities.
 Performing self evaluation will ensure that there are minimum control
weaknesses within the system.

11BELL STUDIO STRATEGIC INFORMATION SYSTEMS
 Adequate training towards the staff will help in processing the performance and
will enhance the activities within the system.
Conclusion
From the above report it can be concluded that there is a high need to analyze
the performance of the system. This ensures that all the activities are performed
efficiently with minimum errors. The assessment has included the internal issues that
are faced with these systems. The major concern of the system is that it focuses on
describing the weakness so that it becomes easy to manage the task. Hence it can be
stated that with proper management skill it will become easy to handle the system.