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A framework for analytics and simulation of accounting information systems: A Petri net modeling primer

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  • Kim, Rosemary
  • Gangolly, Jagdish
  • Elsas, Philip

Abstract

Accountants have modeled and documented accounting information systems (AIS) through system flowcharts, which have also been used to study internal controls. However, when AIS are large, complex, and distributed, their system flowcharts are difficult to comprehend, challenging to use, and insufficient to support decision making in system design and implementation. In this primer we propose a set of requirements for modeling and documenting complex AIS that address those concerns. Since most other models such as SSAD, UML, and BPMN used to represent AIS are influenced by or can be reduced to Petri net models, we compare system flowcharts with Petri net representation of AIS. We evaluate systems flowcharts and Petri nets for their suitability in modeling AIS. We find that Petri nets are an attractive alternative due to their extensive capability to perform analytics and simulation. Analytics can be used to study structural and behavioral properties while simulations can help study run-time behavior of systems to evaluate computing capacity and system performance. We provide a detailed description and guidelines of how design analytics and implementation analytics can be achieved based on the Petri net framework. With this unified modeling strategy, we also describe how it can support the process of audit analytics. Petri nets are popular in computer science, engineering, manufacturing, supply chain management, and business process reengineering. We explore this viable method for rigorous study of AIS modeling and documentation.

Suggested Citation

  • Kim, Rosemary & Gangolly, Jagdish & Elsas, Philip, 2017. "A framework for analytics and simulation of accounting information systems: A Petri net modeling primer," International Journal of Accounting Information Systems, Elsevier, vol. 27(C), pages 30-54.
    • Handle: RePEc:eee:ijoais:v:27:y:2017:i:c:p:30-54
    DOI: 10.1016/j.accinf.2017.09.002
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    References listed on IDEAS

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    1. Weigand, Hans & Elsas, Philip, 2012. "Model-based auditing using REA," International Journal of Accounting Information Systems, Elsevier, vol. 13(3), pages 287-310.
    2. Elsas, Ph.I., 2008. "X-raying Segregation of Duties: Support to illuminate an enterprise's immunity to solo-fraud," International Journal of Accounting Information Systems, Elsevier, vol. 9(2), pages 82-93.
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    4. Gold, Robert, 2004. "Petri Nets in Software Engineering," Arbeitsberichte – Working Papers 5, Technische Hochschule Ingolstadt (THI).
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    Cited by:

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    2. Adrian-Cosmin Caraiman, 2020. "Internal Control in Corporate Governance," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 606-611, December.
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    4. Ayan Chatterjee & Debmallya Chatterjee, 2024. "A Journey of Business Analytics in Improving Supply Chain Performance: A Systematic Review of Literature," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(2), pages 337-361, May.
    5. Audeh Ahmad Bani Ahmad, 2018. "The Internal Auditing Procedures Effectiveness in Using Accounting Information System to Assess Fraud in Jordanian Commercial Banks," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 291-298, July.
    6. Kocsis, David, 2019. "A conceptual foundation of design and implementation research in accounting information systems," International Journal of Accounting Information Systems, Elsevier, vol. 34(C), pages 1-1.

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