You Are Recently Employed As A Business Analyst At Adam Co A Perth Based Wholesaler 3821261

You are recently employed as a business analyst at Adam & Co, a Perth-based wholesaler of industrialsupplies. Adam & Co sources its inventories from manufacturers in China, Thailand and Vietnam. Thecompany has a centralised accounting system with networked terminals at different locations. Adam& Co’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 reconcilesthe 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.



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