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Full-Text Articles in Business
Environmental Risks: Doing Business In China, Jack R. Ethridge, Treba Marsh, Esther Bunn
Environmental Risks: Doing Business In China, Jack R. Ethridge, Treba Marsh, Esther Bunn
Faculty Publications
Planning and conducting the audit of financial statements involves understanding the entity and the environment in which it operates. First and foremost this requires identifying the risks faced by the entity. Identifying these risks can be a complex and difficult task since the auditor needs to not only understand the entity’s risk process but also independently understand the risks facing the firm. Tackling this task will involve a comprehensive review of the external and internal factors affecting the business. It is possible many identified business risks are related to financial reporting risk and ultimately to audit risk. Therefore, the auditor …
Exploring Accounting Fraud In The Subsidiary Environment, Carmelita J. Troy, Madeline Ann Domino, Steven P. Landry
Exploring Accounting Fraud In The Subsidiary Environment, Carmelita J. Troy, Madeline Ann Domino, Steven P. Landry
Faculty Publications
This research explores accounting fraud in the subsidiary environment. Utilizing institutional theory, we propose that the subsidiary environment provides an opportune setting and vehicle for individuals to commit accounting fraud. While a growing body of literature exists on accounting fraud, minimal work has focused on the role of the subsidiary in accounting fraud, as reported by the Securities and Exchange Commission (SEC). We sample companies for which the SEC has documented accounting fraud in their enforcement releases. We then analyze the related SEC documents to determine to what extent, if any, a subsidiary is involved in the accounting fraud. Our …
Learn Audit Selection Rules From Data: A Genetic Algorithms Approach, David P. Greene, Rayman D. Meservy, Stephen F. Smith
Learn Audit Selection Rules From Data: A Genetic Algorithms Approach, David P. Greene, Rayman D. Meservy, Stephen F. Smith
Faculty Publications
The construction of expert systems typically require the availability of expertise that can be modeled. However, there are many important problems where no expertise exists, yet there is a wealth of data indicating results in different situations. Machine learning algorithms attempt to discover rules which capture the regularities that exists in such data.
Development And , Application Of Expert Systems In Audit Services, Eric L. Denna, James V. Hansen, Rayman D. Meservy
Development And , Application Of Expert Systems In Audit Services, Eric L. Denna, James V. Hansen, Rayman D. Meservy
Faculty Publications
Professional auditing has become much more complex over the past decade. This development has engendered a need for leveraging auditor expertise. In an attempt to meet this need, public accounting firms have been actively involved in supporting the development and application of artificial intelligence methods in audit services, which forms the foundation of their business. Much of the development and application of artificial intelligence in auditing has taken the form of expert systems. This paper examines the current state of the art and provides a framework for analysis of present work, as well as a guide to future efforts.
Investigating Expertise In Auditing, Paul E. Johnson, Andrew D. Bailey Jr, Rayman D. Meservy
Investigating Expertise In Auditing, Paul E. Johnson, Andrew D. Bailey Jr, Rayman D. Meservy
Faculty Publications
Research on human expertise in auditing contexts is an important area of study. Our objective in this paper is to present an approach to conducting research on human expertise. We begin with some issues of terminology and then propose a strategy for inquiry into the phenomena of expertise. Finally, we attempt to illustrate this strategy with three examples of recently completed work. The examples include: two from the auditing literature that involve the analysis of internal control and a medical diagnosis case which illustrates the "garden path" problem that is of concern in any decision making context, including auditing.
Internal Control Evaluation: A Computational Model Of The Review Process, Rayman D. Meservy, Andrew D. Bailey Jr, Paul E. Johnson
Internal Control Evaluation: A Computational Model Of The Review Process, Rayman D. Meservy, Andrew D. Bailey Jr, Paul E. Johnson
Faculty Publications
This study investigated the strategies by which experienced auditors evaluate systems of internal accounting controls. The research method included: (1) observations, using concurrent protocols, of a small sample of practicing auditors performing the internal control evaluation task; (2) extensive interviews with one of the practicing auditors; (3) formalization of auditor processes as a computational model; and (4) validation of the model. The simulation model was Im· plemented as an expert system and tuned to one auditor. The model output consists of a trace of the model processing including: (1) rec• ommendatlons for specific controls to be compliance tested; and (2) …
Auditing, Artificial Intelligence And Expert Systems, Andrew D. Bailey, Rayman D. Meservy, Gordon L. Duke, Paul E. Johnson, William Thompson
Auditing, Artificial Intelligence And Expert Systems, Andrew D. Bailey, Rayman D. Meservy, Gordon L. Duke, Paul E. Johnson, William Thompson
Faculty Publications
This paper will provide the reader with an introduction to the field of financial auditing and the applicability of Decision Support Systems (DSS), Artificial Intelligence (AI), and Expert Systems (ES) to that field of endeavor. The paper will also discuss a continuing research project concerning the application of DSS/AI/ES techniques to the evaluation of internal accounting controls. The reader will find that the evaluation of internal accounting controls is a critical step in every financial audit and that it is an area in which the auditor exhibits substantial expertise. It is thus an area of work particularly suited to the …