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Schematic Evaluation of Internal Accounting Control System

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EURIDIS Research Monograph

SCHEMATIC EVALUATION OF INTERNAL ACCOUNTING CONTROL SYSTEMS

Kuo-Tay Chen* and Ronald M. Lee#
* Department of Management Purdue University at Calumet Hammond, IN 46323 U.S.A. chenk@pucal.bitnet # Erasmus University Research Institute for Decision and Information Systems (EURIDIS) Erasmus University Rotterdam The Netherlands rlee@fac.fbk.eur.nl

ERASMUS UNIVERSITY RESEARCH INSTITUTE FOR DECISION AND INFORMATION SYSTEMS

Schematic Evaluation of Internal Accounting Control Systems by Kuo-Tay Chen and Ronald M. Lee Monograph No. RM-1992-08-1 (August 11, 1992)

EURIDIS Research Monograph Erasmus University Rotterdam, The Netherlands © Kuo-Tay Chen and Ronald M. Lee Permission to copy this monograph without fee is granted provided that (1) the copies are not distributed for the direct commercial purpose and (2) this copyright page including the copyright notice, the EURIDIS monograph number, and date appear.

TABLE OF CONTENTS
CHAPTER 1. INTRODUCTION ...................................... 1 1.1 BACKGROUND .......................................... 1 1.2 MOTIVATION ............................................. 3 1.3 OBJECTIVE OF THE STUDY .......................... 4 1.4 ISSUES OF INTEREST .................................. 6 1.5 SCOPE OF THE STUDY................................. 7 1.6 CONTRIBUTIONS OF THE STUDY .................. 8 CHAPTER 2. DECISION AIDS RESEARCH FOR INTERNAL CONTROL EVALUATION ............................................ 9 2.1 A REVIEW OF PAST APPROACHES................. 9 2.1.1 MATHEMATICAL MODELING ............ 9 2.1.2 SIMULATION ................................. 12 2.1.3 EXPERT SYSTEMS .......................... 14 2.1.4 OTHER COMPUTER DECISION AIDS . . . 15 2.2 SCHEMATIC EVALUATION - THE PROPOSED APPROACH .................................................... 16 2.2.1 SCHEMA-BASED REASONING .......... 16

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