Management of strategic information is one of the important feature in the growing Information Technology based world today. The process itself is a business in its categorisation, process, Store, protecting and transferring the information created and received by them, It also allows the companies to be applied as analytical tools to be able to calibrate the growth opportunities and ensure operational efficiency. In this report a discussion is presented on a renowned art and supplies firm called Bell Studio based in Adelaide. The Foodpanda and travels important component of Expenditure or transaction cycles within the company such as purchase in system, cash December cement system and payroll system along with shading light on existing internal control weakness in each of the system followed by certain measures to be applied to avoid such issues.
Data flow diagram is visual depiction of the flow of information within a certain system being processed. It is not the design of the process rather it is the for the requirement that a system needs in order to you execute as well as accomplish certain program all process wit in a system. It is an important tool connecting Bridge between system analyst and the person who initiates system redesigning (De Simone, Ege and Stomberg 2014). The Diagram represents visually the teps followed by a data starting from the external source till the end of the destination in the internal source.
DFD of Purchasing System
One of the important measure to avoid the risk and to do away with the internal control weakness can be maintained through a daily report by the purchasing department specially the Sequencing of purchase requisition and the orders to be delivered. This will enhance the Assurance of the shipment of all the purchased items (Arvidsson, Holmström and Lyytinen 2014). The selection of vendor for supplier should be done based on prices charged, time of delivery, quality of the product and its design creativity is well to attract I will reach to more customer base. In order To avoid additional problems the clock associated with this department should maintain all the printed hard copies of the purchase order, received report etc safely.
The second important component of expenditure cycle is cash disbursement which refers to the process related to the fund usage within a business organisation. The cash is this embarrassed two different sectors, departments and even employees for the benefit and various usage. Such processes of cash disbursement are strictly executed within the internal control and the framework of self created rules.
From the above diagram the process of cash disbursement within their Studio is quite clear. After the purchasing clerk send document to the department of account payable. the can characters keep the documents hidden file till the due date for the payment arise and on the very due date cheque ok is prepared by him (Galliers and Leidner 2014).. The cheque if sent to the treasurer for assigning and after that it is directly mail to the vendor or supplier. It is the duty of the cash disbursement clerk to update the check register and the subsidiary ledger of account payable. The invoice, copy of purchase, cheque ok and receiving report our father kept in files by receiving clerk of the said department.
Handling of documents and keeping adequate documentation Army major internal control weakness within cash disbursement department. Due to digitalization of management system regarding making payment, approval, modification, time of modification, execution, results of action often can go wrong, misplaced or even deleted or not stored properly. This can lead to huge loss of data affecting the business. The department requires segregation of function allotted to different employees rather than allocating loads of works to single clerks. This can often lead to failure in the execution of task as well as fraudulent activity. Availability of adequate training sometimes get missing as it is very important to update the standard of the company in terms of managing financial resources such as cash disbursement (Gissel 2014). The company often neglect to keep track of the approvers made by its employees so that it does not exceed their level of authorisation because if that happens continuously the company can land of in severe financial trouble. Another major issue revolve around reconciliation of the important document such as inventory report, purchase order, invoice, copies of cheque etc. Lack of properly consolation can lead to lack of accountability for difference is within business which is not expected at any cost.
In order to deal with documentation issue it is important to ensure inclusion of supporting documentation within cash disbursement system. It will empower each Walkers to make verification regarding the integrity of transaction of cash and supporting documentation will consolidated the process without keeping any scope for tampering the data in future. It Is also important to review the steps in order to secure the electronic as well as physical cash and related data which should be secured with strong password policy (Guo, Huang, Zhang and Zhou 2015). In order to safeguard information related to financial transactions it is mandatory to review the electronic as well as manual oversight control. Access To various functions should be according to the allocated responsibilities of the workers does limiting their unlimited access in other documents and also trimming their activities.