Students are required to:? Describe the various transaction cycles, financial reporting, management reportingsystems 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 needto be in place. (ULO 4)? Appreciate the opportunities for computer fraud and the security measures inelectronic commerce that need to be taken to overcome this. (ULO 5)Assignment SpecificationsBackgroundYou are recently employed as a business analyst at Bell Studio, an Adelaide-based wholesaler of artsupplies. Bell Studio sources its inventories from manufacturers in Australia, China, Japan and NewZealand. The company has a centralised accounting system with networked terminals at differentlocations. Bell Studio’s expenditure cycle procedures are described as follow:Purchases SystemThe process begins when the purchasing clerk checks the inventory subsidiary ledger at his/hercomputer terminal each morning. When the quantity of an item is deemed to be too low, the clerkselects a vendor from the valid vendor file and prepares a digital purchase order. The clerk prints twohard 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 reconcilesthe items against the information in the digital purchase order and the packing slip. The clerk thenmanually prepares two hard copies of the receiving reports. One of these accompanies the goods tothe inventory warehouse, where the clerks shelves the goods and updates the inventory subsidiaryledger 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 theaccounts payable clerk files it until the supplier’s invoice arrives. When the accounts payable clerkreceives the invoice he pull the receiving report from the temporary file, prints a hard copy of thedigital purchase order, and reconciles the three documents. At this time, the clerk updates the digitalaccounts payable subsidiary ledger, the accounts payable control account and the inventory controlaccount 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 SystemUpon the receipt of the documents from the accounts payable department, the cash disbursementsclerk files the documents until their payment due date. On the due date, the clerk prepares a chequefor 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 clerkfiles the invoice, purchase order copy, receiving report, and cheque copy in the department.Payroll SystemBell Studio’s employees record their hours worked on time cards every day. Their supervisors reviewthe 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 dataprocessing department, the payroll clerk inputs the time card data, prints hard copies of the paycheques, print two copies of the payroll register, and posts to digital employee records. The payrollclerk files the time cards in the payroll department and sends the employee pay cheques to thevarious supervisors for review and distribution to their respective department employees. Thepayroll clerk then sends one copy of the payroll register to the accounts payable department, andfiles the other with the time cards in the payroll department.Page 3 of 5HI5019 Strategic Information Systems for Business and Enterprise Individual AssignmentThe accounts payable clerk reviews the payroll register and manually prepares a disbursementvoucher. The clerk sends the voucher and the payroll register to the general ledger department. Theaccounts payable clerk then writes a cheque for the entire payroll and deposits it in the imprestaccount 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 generalledger from the department computer terminal and files the voucher and payroll register in thedepartment.RequiredPrepare a report to Chief Operating Officer to evaluate the processes, risks and internal controls forits 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 theidentified weaknessAssignment StructureThe 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 sectionheadings? Conclusion? List of references