A formal algorithmic model compatible with accounting information systems

Kyeong Seok Han, Purdue University

Abstract

Accounting and Computer Science have been uneasy partners in the development of accounting information systems. The history of their association has generally led accountants to do the best they could in matching the needs of accounting information systems to the demands of current hardware and software developments. While the results have been impressive, recent developments in accounting and computer science make it possible to approach the modeling of accounting information systems. First, this thesis attempts to develop a formal algorithmic model of accounting based on the existing specification of accounting theory and a functional programming language, ML. We call the model Formal Algorithmic Accounting Model (FAAM). A number of benefits are derived from the approach motivated by program verification issues for auditing: (1) the resulting model is algorithmic (executable) and formal (mathematical); (2) it supports the coding of knowledge such as that embodied in generally accepted accounting principles and practices; (3) it offers verification potential; etc. Second, this thesis also develops an advanced The Internal $\underline{\rm Co}$ntrol Model-IV (TICOM-IV) for internal accounting control and implements a prototype example of a purchasing cycle using a logic programming language, PROLOG. The proposed model, TICOM-IV, is based on a logical specification of an auditing domain problem and utilizes artificial intelligence and logic programming language concepts. A number of benefits are derived from this interdisciplinary approach: (1) TICOM-IV is a more natural representation for the internal accounting control description than previously available; (2) The model provides a more convenient means of the analysis, in particular, the contraction algorithm for identifying pre-conditions before a particular process. Finally, this thesis develops a user interface accounting model using visual programming and visualization of program based on user interface development systems. The user interface accounting model develops a direct manipulation user interface facility for the FAAM and TICOM-IV. The resulting integrated model of user interfaces and a combined processing and reporting system will be designated FAAM-II (User Interface Accounting Model). The model offers greater user-friendliness for accountants and auditors by generating facilities for building flexible direct manipulation user interfaces based on user interface development systems such as a syntax-directed editor.

Degree

Ph.D.

Advisors

Whinston, Purdue University.

Subject Area

Management|Accounting

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