Individual Assignment
Strategic Information System for Business and Enterprise
Unit Code: T1-H15019
Student Name: Uddin Syed Hyder
Student ID: EGP3178
Executive Summary
The report highlights on the accounting and the consultancy firms were there are decisions about the consultancy business. Here, the discussion is based on Paradise Industry with the manufacturing of the high precision machine tools that is based on Adelaide. The company works on employing the centralized system of computer with the handling of the department planning on the distributed standards. The focus is on the company standards with the operational problems that includes the engagement with assessing the systems and the processes. It works on the inventory items and then handling the details for the receiving of the details with preparing the quantity and the goods quality received.
Table of Contents
Executive Summary 1
Introduction 2
Expenditure Cycle 2
System Flow chart: 2
Conversion Cycle 3
System Flowchart 3
Internal Control Weakness and Risks 4
Analysis of Risk and the Changes in Conversion Cycle 5
Conclusion 6
References 6
Introduction
The main objective of the expenditure cycle is considered as the conversion of business with cash, human resource and other material. These all things are used in business for the enhancement of the functions of organization. The expenditure of the Paradise Industry is including the purchase, disbursement of cash and the payroll system. There are some risk of evaluation process and some internal control system for the cycle of expenditure.
Expenditure Cycle
The Purchase System:
The system of purchase will handle the process that is used for composing the tasks. The tasks which has been placing the orders and receiving the inventories for improvement and recognized the needs of inventory. It will re-evaluate the availability of the liabilities. The purchase structure consists of procedures that are utilised for dealing with the composition of important works with the placement of orders and then accomplishing varied inventories for increasing and then recognizing the needs of inventory. It then assists in the revaluation of the presence of various liabilities also. Thus, here the purchasing procedure is when there is a number of inventories because of subsidiary kind of ledger for the organization at the current computer structure (Brown et al.,). It needs to function on varied physical documents where the order of purchase is when printed in order to send copy towards the vendors as well as the other can retain by purchase section for right kind of recording. The inventory here is achieved and the achieving clerk that has the tendency to evaluate and inspects concept focused on reconciliation of all kind of digital shopping of the orders as well as then update because of the same. It consists of those accounts which are a payable section that is established for the different accounts in order to record the work (Brambilla
et al., 2019). It consists of the payable kind of control account as well as the inventory focused control account. Also, it is important that clear must be sent to the varied invoice copy for achieving the report and then consist of purchase form of orders which are sent for the sake of cash disbursement of the organization. The preparation has been made to check the slip that will be set for handling the forms that is included in the packet received.
System Flow chart:
The company will send the document for cash disbursement to the account while all the accounts are payable directly to the departments. The documents which are used in the payment is very tough to maintain and handle. During the time, when accounts are a payable indirect form for the section, then the organization send all the documents for the disbursement of cash in the all possible kind of accounts. It also has the tendency to maintain a diverse kind of documents that are dealt with via payments. The plan-based requirement must be done for maintaining the documents at the time of payment is also due (Lin et al., 2020). This way, the clerk also must very prepare with all possible invoice that must be sent to the suppliers or distributors after signing on it from the executives. The process of updating of the similar and then later the cheque-based register account which is payable with a subsidiary ledger that is further payable to control the accounts. The data can further be updated while achieving the clerk kind of details via record files for different invoice and other shopping orders, getting the reports and other copies of the cheque.
Conversion Cycle
The Paradise Industries are working with their employees on record hours using the timecards.
The supervisor is worked for the review the all procedures and evaluate the accuracy. Then the supervisor will submit the data to the payroll department in the end of the week (Inun, 2019). The cheque will be deposited to the account that is impress with the bank. The copy of the cheque is released by the same and then t will be filled with the account detail by payable department. The workforces for the sake of Bell Studio are operating over different records of the time with the help of time-based cards. The mentor is functioning on the review process to evaluate the righteousness and accuracy than submit it for the department of payroll towards the weekend. The whole system must be computerised as well as then there are different updates on the data related to terminals that can assist in associating to complete payroll structure. This further will assist in establishing and processing the data for the company. The workforces can function on the overall distribution process with review and establishing payroll structures. This will assist in establishing and processing the company’s data. The workforce can function on the basis of the distribution process with review and establishing the payroll kind of files that are worked on the basis of cheques that are further offered. The clerk for payroll then further sends one copy for the similar account that is for payable section. There are varied other sections for the organization who have the tendency to actually file for varied documents and then deal with varied time cards for the payroll structure also. The accounts because of the clerk who can review payroll-based registration and then also prepare the overall disbursement of different vouchers also in a manual manner.
System Flowchart
The control on the inventories has been implemented by it. The case study of the paradise industry will focus the main thing that how to manage the requisition and to deal it with purchasing department. Therefore, the clear is now can further send all the preparation of different vouchers as well as the payroll can be done varied time-based cards for the sake of payroll structure also. There are many accounts that are payable because of the clerk to test the payroll registration and then further prepare for the process of disbursement of many vouchers that too in a manual manner.
This is why the clear is current can send all the preparation of vouchers as well as the payroll which is done to the section with accessibility for the sake of general ledger. After the right kind of recording which can be done for diverse functions, then the accounts tend to pay for the clerk who can prepare the cheque for the complete payroll of the company. After that, it is deposited to gain attention to the account. The complete copy is further released because of the similar goal and after that, the cheque can be filed with different accounts that are payable section. (Akyuz et al., 2019).
Internal Control Weakness and Risks
The Purchase System:
The Stock checking system is related to the control weakness and the risk for the purchase requisition and the result of this is overstocking (Exchange, 2019). It is analyses that the comparison will not be done on regular basis, so the error in the creditor’s ledger will be twice in a year. To control this type of error the accounts are set for the longer period to manage these problems. It consists of the complete control on all kinds of inventories where there are drops towards many pre-decided reorder elements. Thus, the case study Bell Studio pays attention to how one can clear and prepare to deal with a requisition that is sent to different purchasing section. The shopping sections are than can also prepare the shopping order because of the vendors. There are different copies that are then sent for controlling the inventory. Also, the processing can be done to ensure about achieving the receipts and then also being able to count that are crucial for varied copies discussed in reports. It has the tendency to then help all kind physical inventories for keeping it in the storeroom. There is another copy is then can be sent for the shopping sections where the clerk can further accommodate it with PO. The third on is associated with receiving the reports and then further sent it for the inventory for controlling and all kind of inventory focused subsidiary is part of the ledger that can be updated from time to time (Laudon and Laudon, 2016). The whole system consists of the final or end copy for the receiving section. The whole department of financial data needs to deal with the records and then further planning based on the posts with many suppliers-based accounts. The general level of ledger section can receive the vouchers for the sake of disbursement based on cash which will be discussed in detail in the next case.
Cash Disbursement
There are proper planning that has been focused on the accounts with different transaction in accurate manner. This transaction will avoid the cash flow for the balance. The payroll time data is entered by after the discussion with the codes which have been shared to all the employees. The payroll system will set the system of hiring new employees in the organization. The responsibility of working with the distribution system and the process of pay checks (Naveed, 2019). The disbursement will include the practice which will invoke the clerk for having the refund that is depended upon the condition. In order to deal with a check based on cash disbursement structure, there are varied kinds of facilities that consist of a right kind of plan for the cash-based disbursement section executives.
Analysis of Risk and the Changes in Conversion Cycle
There are many risks related to trade and the return which can be minimized the risk and increase the return. The holding of the cash will get the cash balance sheet which will help to provide the safety. By this safety net we can reduce the chance of bill payment (Doruk et al., 2019). The corporate bonds have been defined as receivable with the handling of speculation for the price which will end the changes based on higher balances for the cash. The overall weakness is related to the offer of security via the identification of the time-based clock structures that save from work time documents. It also consists of the discussing related to entering the payroll focused time data with different codes that can be shared among the workforces. It further consists of the accountabilities for establishing the new workforces and working on the overall distribution of all kind of pay cheques. The analysis requires to be done for gaining clarity about separating with the accountability of all the dishonest workforces. The Bell Studio also requires is to pay attention that lacks payroll opinions along with the prior level of the process of pay cheques. Thus, the analysis requires to be done for the terminating the process with yet achieving pay cheques. When there is a lack of internal level of auditing leads towards issues that can deter the dishonest workforces from establishing the schemes that are defrauding the managers and then decrease the finance loss issues also.
The challenges are associated with ERP requirement must be dealt with the attention on control focused design, evaluating and the control of the framework level of documentation. It also consists of estimating, plans and rightly offering the major structures. The ERP activities leaders can fail to identify that is an option of underestimation of all efforts as well as the skills that are related to risks. The knowledge gaps are for dealing with projects focused delay that can address to embedded of control with new kind of structure establishments. This is why, ERP projects groups require to function on constructing a deep level of technology and the software experts that might further lack diverse angles related on the management of challenges along with controls. In such cases, the employees who practice also require planning about the internal level of controls that impact diverse features of execution procedure and the technology or the consumer education finally.
The business procedures and the information which are related to the design of account process. The associated sales are done, and the receipt of the procedure will be attached with sales that can be matched. The right kind of the trails are providing the assistance with the proper procedures (Kolias et al., 2020). The trusted data and the process is depending on the task which will manage the records at the closing time. The finance focused statement are depended on the documents based process while is ended with the goods and the general level of the ledger can be challenged with fraud while auditing the process. The adjustment of the different entries which are write or wrong can be discussed with the managers and the focusing on the entries which comes to adjust the entries that will provide the profitability. The gain of the clarity by the IT control will over the internal level of the controlled and initial authorized activity. This will control the plan which have been made for reporting procedure and focusing the finance. The deduction of payroll or the time or the tracking of attendance will be done by the different taxes which has been played by the company. This process will help to analyze the tracking function and will check the other procedure of payroll system (Seth et al., 2019).
Conclusion
After the analysis of Paradise Industry, we will get a report. The report will show that the industry will focus on many aspects to manage the defined procedures of cash disbursement (Muharromah et al., 2019). The company will also manage the payroll system of the Industry according to its requirements. It is very important for the organization to plan a design to make system very effective and reduce the risk. The risk management capabilities of the organization will be maximized with the implementation of this design that is sustainable compliance process. It is possible by the optimized control when the evaluation and designing of the system done through segregation of the framework duty. This will also control the mitigation process. The ERP auditing system will deliver, and it will reduce the time of testing with the cost that will be effective for use in implementation of the control system with effective manner.
References
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Brambilla, A., Bianchi, M.L., Cancello, R., Galimberti, C., Gasperini, S., Pretese, R., Rigoldi, M., Tursi, S. and Parini, R., 2019. Resting energy expenditure in argininosuccinic aciduria and in other urea cycle disorders. Journal of inherited metabolic disease, 42(6), pp.1105-1117.
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Exchange, S., 2019, July. Cash Conversion Cycle and Firms’ Performance: An Empirical Study for the Greek Listed Firms in the Athens. In Economic and Financial Challenges for Eastern Europe: Proceedings of the 9th International Conference on the Economies of the Balkan and Eastern European Countries in the Changing World (EBEEC) in Athens, Greece, 2017 (p. 367). Springer.
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Lin, Q. and Lin, X., 2020. Cash conversion cycle and aggregate stock returns. Journal of Financial Markets, p.100560.
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Wang, B., 2019. The cash conversion cycle spread. Journal of Financial Economics, 133(2), pp.472-497.
Wulandari, E.A. and Setiawan, M.A., 2019. Pengaruh Growth Opportunity, Net Working Capital, Cash Conversion Cycle Dan Dividend Payout Terhadap Cash Holding. Jurnal Eksplorasi Akuntansi, 1(3), pp.1259-1274.
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