This report provides a comprehensive analysis of the expenditure cycle within Bell Studio, examining the various processes involved, including requesting materials, accepting goods, and making payments. It utilizes data flow diagrams and system flowcharts to illustrate the flow of information and activities within the cycle. The report identifies key risks associated with the ordering, receiving, and payment processes, such as excess stock, ordering unnecessary materials, and paying inflated prices. Furthermore, it outlines the internal controls necessary to mitigate these risks, emphasizing the importance of accurate forecasting, inventory management, and proper authorization procedures. The analysis also explores how IT systems can be leveraged to improve the efficiency and effectiveness of the expenditure cycle, particularly through the use of EDI for invoice processing. The report concludes with recommendations for enhancing the overall performance and security of Bell Studio's expenditure cycle.
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