Describe the various transaction cycles, financial reporting, management reporting
systems and e-commerce. (ULO 2)
Understand the risks inherent in computer-based systems/ERP, including ecommerce, the role of ethics and the various internal control processes that need
to be in place. (ULO 4)
Appreciate the opportunities for computer fraud and the security measures in
electronic commerce that need to be taken to overcome this. (ULO 5)
Weight 20% of the total assessments
Total Marks 20
Word limit Not more than 2,500 words
Due Date Week 6, Friday 5:00 pm (AEST)
Submission
Guidelines
All work must be submitted on Blackboard by the due date along with a completed
Assignment Cover Page.
The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm
margins on all four sides of your page with appropriate section headings and page
numbers.
Reference sources must be cited in the text of the report, and listed appropriately
at the end in a reference list using Harvard referencing style.
Page 2 of 5
HI5019 Strategic Information Systems for Business and Enterprise Individual Assignment
Assignment Specifications
Background
You are recently employed as a business analyst at Bell Studio, an Adelaide-based wholesaler of art
supplies. Bell Studio sources its inventories from manufacturers in Australia, China, Japan and New
Zealand. The company has a centralised accounting system with networked terminals at different
locations. Bell Studio’s expenditure cycle procedures are described as follow:
Purchases System
The process begins when the purchasing clerk checks the inventory subsidiary ledger at his/her
computer terminal each morning. When the quantity of an item is deemed to be too low, the clerk
selects a vendor from the valid vendor file and prepares a digital purchase order. The clerk prints two
hard copies: one copy is sent to the vendor, and the other is filed in the purchasing department.
Digital purchase order record is added to the purchase order file.
When the goods arrive in the receiving department, the receiving clerk inspects them and reconciles
the items against the information in the digital purchase order and the packing slip. The clerk then
manually prepares two hard copies of the receiving reports. One of these accompanies the goods to
the inventory warehouse, where the clerks shelves the goods and updates the inventory subsidiary
ledger from his/her computer terminal. The clerk then files the receiving report in the department.
The other copy of the receiving report is sent to the accounts payable department, where the
accounts payable clerk files it until the supplier’s invoice arrives. When the accounts payable clerk
receives the invoice he pull the receiving report from the temporary file, prints a hard copy of the
digital purchase order, and reconciles the three documents. At this time, the clerk updates the digital
accounts payable subsidiary ledger, the accounts payable control account and the inventory control
account in the general ledger from his terminal. The clerk then sends the invoice, receiving report,
and the purchase order copy to the cash disbursement department.
Cash Disbursements System
Upon the receipt of the documents from the accounts payable department, the cash disbursements
clerk files the documents until their payment due date. On the due date, the clerk prepares a cheque
for the invoiced account, when is sent to the treasurer who sign it and mail the cheque to the vendor.
The cash disbursements clerk then updates the cheque register, accounts payable subsidiary ledger,
and the accounts payable control account from his/her computer terminal. Finally, the receiving clerk
files the invoice, purchase order copy, receiving report, and cheque copy in the department.
Payroll System
Bell Studio’s employees record their hours worked on time cards every day. Their supervisors review
the time cards for correctness and submit them to the payroll department at the end of each week.
Using a computer terminal connected to the central payroll system, which is located in the data
processing department, the payroll clerk inputs the time card data, prints hard copies of the pay
cheques, print two copies of the payroll register, and posts to digital employee records. The payroll
clerk files the time cards in the payroll department and sends the employee pay cheques to the
various supervisors for review and distribution to their respective department employees. The
payroll clerk then sends one copy of the payroll register to the accounts payable department, and
files the other with the time cards in the payroll department.
Page 3 of 5
HI5019 Strategic Information Systems for Business and Enterprise Individual Assignment
The accounts payable clerk reviews the payroll register and manually prepares a disbursement
voucher. The clerk sends the voucher and the payroll register to the general ledger department. The
accounts payable clerk then writes a cheque for the entire payroll and deposits it in the imprest
account at the bank. Finally the clerk files a copy of the cheque in the accounts payable department.
Once the general ledger clerk receives the voucher and payroll register, the clerk posts to the general
ledger from the department computer terminal and files the voucher and payroll register in the
department.
Required
Prepare a report to Chief Operating Officer to evaluate the processes, risks and internal controls for
its expenditure cycle. In your report, you need to include the following items:
Data flow diagram of purchases and cash disbursements systems
Data flow diagram of payroll system
System flowchart of purchases system
System flowchart of cash disbursements system
System flowchart of payroll system
Description of internal control weakness in each system and risks associated with the
identified weakness
Assignment Structure
The report should include the following components:
Assignment cover page clearly stating your name and student number
A table of contents, executive summary
A brief introduction or overview of what the report is about.
Body of the report with sections to answer the above issues and with appropriate section
headings
Conclusion
List of references
The report should be grounded on relevant literature and all references must be properly cited and included
in the reference list.
Marking criteria
Marking criteria Weighting
Data flow diagram of purchases and cash disbursements systems 2%
Data flow diagram of payroll system 2%
System flowchart of purchases system 2%
System flowchart of cash disbursements system 2%
System flowchart of payroll system 2%
Description of internal control weakness in each system and risks associated
with the identified weakness
6%
Presentation 2%
Research quality 2%
TOTAL Weight 20%
Page 4 of 5
HI5019 Strategic Information Systems for Business and Enterprise Individual Assignment
Marking Rubric
Excellent Very Good Good Satisfactory Unsatisfactory
Data flow
diagram of
purchases and
cash
disbursements
systems
/2
Present a data
flow diagram
that correctly
depict the whole
purchases and
cash
disbursement
systems.
Present a data
flow diagram
that correctly
depict the whole
purchases and
cash
disbursement
systems with
minor errors.
Present a data
flow diagram
that depict the
purchases and
cash
disbursement
systems with
some errors
and/or omission.
Present a data
flow diagram
that depict the
purchases and
cash
disbursement
systems with
errors and/or
omissions
throughout the
diagram.
Present a data
flow diagram
that does not
properly
represent the
purchases and
cash
disbursement
systems.
Data flow
diagram of
payroll system
/2
Present a data
flow diagram
that correctly
depict the whole
payroll system.
Present a data
flow diagram
that correctly
depict the whole
payroll system
with minor
errors.
Present a data
flow diagram
that depict the
payroll system
with some
errors and/or
omissions.
Present a data
flow diagram
that depict the
payroll system
with errors
and/or
omissions
throughout the
diagram.
Present a data
flow diagram
that does not
properly
represent the
payroll system.
System
flowchart of
purchases
system
/2
Present a
system
flowchart that
correctly depict
the whole
purchases
system.
Present a
system
flowchart that
correctly depict
the whole
purchases
system with
minor errors.
Present a
system
flowchart that
depict the
purchases
system with
some errors
and/or
omissions.
Present a
system
flowchart that
depict the
purchases
system with
errors and/or
omissions
throughout the
diagram.
Present a
system
flowchart that
does not
properly
represent the
purchases
system.
System
flowchart of
cash
disbursements
system
/2
Present a
system
flowchart that
correctly depict
the whole cash
disbursements
system.
Present a
system
flowchart that
correctly depict
the whole cash
disbursements
system with
minor errors.
Present a
system
flowchart that
depict the cash
disbursements
system with
some errors
and/or
omissions.
Present a
system
flowchart that
depict the cash
disbursements
system with
errors and/or
omissions
throughout the
diagram.
Present a
system
flowchart that
does not
properly
represent the
cash
disbursements
system.
System
flowchart of
payroll system
/2
Present a
system
flowchart that
correctly depict
the whole
payroll system.
Present a
system
flowchart that
correctly depict
the whole
payroll system
with minor
errors.
Present a
system
flowchart that
depict the
payroll system
with some
errors and/or
omissions.
Present a
system
flowchart that
depict the
payroll system
with errors
and/or
omissions
throughout the
diagram.
Present a
system
flowchart that
does not
properly
represent the
payroll system.
Page 5 of 5
HI5019 Strategic Information Systems for Business and Enterprise Individual Assignment
Description of
internal control
weakness in
each system and
risks associated
with the
identified
weakness
/6
Present an
excellent
discussion of
internal control
weakness in
each system and
risks associated
with the
identified
weakness.
Present a very
good discussion
of internal
control
weakness in
each system and
risks associated
with the
identified
weakness.
Present a good
discussion of
internal control
weakness in
each system and
risks associated
with the
identified
weakness with
minor errors
and/or
omissions.
Present a
reasonable
discussion of
internal control
weakness in
each system and
risks associated
with the
identified
weakness with
errors and
omissions.
Present a weak
or inadequate
discussion of
internal control
weakness in
each system and
risks associated
with the
identified
weakness.
Presentation
/2
Report included
all elements and
was very well
presented.
Writing flowed
clearly and
sections were
linked very
effectively.
Referencing was
exemplary.
English was used
very effectively
and was errorfree.
Report included
all elements and
was well
presented.
Writing flowed
clearly and
sections were
linked
effectively.
Referencing was
of a high
standard.
English was used
effectively with
very few errors
present.
Report included
all elements and
was generally
presented
appropriately.
Writing mostly
flowed well and
sections were
linked.
Referencing was
in accordance
with guidelines.
English was used
effectively with
few errors
present.
Report included
most elements
and was
adequately
presented.
Writing
sometimes did
not flow clearly
leaving the
paper to seem
disjointed in
areas.
Referencing was
somewhat in
accordance with
guidelines. Basic
English was used
with some
errors present.
Report lacked
some elements
and was poorly
presented.
Writing often
did not flow
clearly leaving
the paper to
seem somewhat
disjointed.
Referencing was
not entirely in
accordance with
relevant
guidelines. Basic
English was used
with errors
present.
Research Quality
/2
An extensive
amount of highquality evidence
from peerreviewed journal
articles and
other sources
was included
and used
effectively to
support
discussion.
A broad range of
quality peerreviewed journal
references and
other sources
was included
and used
effectively to
support
discussion.
An adequate
range of peerreviewed journal
references was
included and
used to support
discussion.
An adequate
range of peerreviewed journal
references was
included and
used to a basic
extent to
support
discussion.
Little or no peerreviewed journal
references were
included and
these were
rarely used to
support
discussion
effectively.
Sample Solution
