IDEAS home Printed from https://ideas.repec.org/a/wly/isacfm/v14y2006i3p77-86.html
   My bibliography  Save this article

Opportunities for artificial intelligence development in the accounting domain: the case for auditing

Author

Listed:
  • Amelia A. Baldwin
  • Carol E. Brown
  • Brad S. Trinkle

Abstract

This paper reviews the nature of accounting and auditing problems and the need for application of artificial intelligence (AI) technologies to the discipline. The discussion includes current accounting issues for which new AI development should be fruitful, particularly auditing and assurance. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Amelia A. Baldwin & Carol E. Brown & Brad S. Trinkle, 2006. "Opportunities for artificial intelligence development in the accounting domain: the case for auditing," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 14(3), pages 77-86, July.
    • Handle: RePEc:wly:isacfm:v:14:y:2006:i:3:p:77-86
    DOI: 10.1002/isaf.277
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/isaf.277
    Download Restriction: no
    File URL: https://libkey.io/10.1002/isaf.277?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. McKee, Thomas E. & Lensberg, Terje, 2002. "Genetic programming and rough sets: A hybrid approach to bankruptcy classification," European Journal of Operational Research, Elsevier, vol. 138(2), pages 436-451, April.
    2. Emmanuel E. Haven, 1998. "The fuzzy multicriteria analysis method: an application on NPV ranking," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 7(4), pages 243-252, December.
    3. Zhang, Guoqiang & Y. Hu, Michael & Eddy Patuwo, B. & C. Indro, Daniel, 1999. "Artificial neural networks in bankruptcy prediction: General framework and cross-validation analysis," European Journal of Operational Research, Elsevier, vol. 116(1), pages 16-32, July.
    4. David Murphy & Carol E. Brown, 1992. "The Uses of Advanced Information Technology in Audit Planning," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 1(3), pages 187-193, September.
    5. Andre de Korvin & Margaret F. Shipley & Khursheed Omer, 2004. "Assessing risks due to threats to internal control in a computer‐based accounting information system: a pragmatic approach based on fuzzy set theory," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 12(2), pages 139-152, April.
    6. Peter J. Best & George Mohay & Alison Anderson, 2004. "Machine‐independent audit trail analysis—a tool for continuous audit assurance," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 12(2), pages 85-102, April.
    7. Chuleeporn Changchit & Clyde W. Holsapple, 2004. "The development of an expert system for managerial evaluation of internal controls," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 12(2), pages 103-120, April.
    8. Lensberg, Terje & Eilifsen, Aasmund & McKee, Thomas E., 2006. "Bankruptcy theory development and classification via genetic programming," European Journal of Operational Research, Elsevier, vol. 169(2), pages 677-697, March.
    9. Jerrold H. May & William E. Spangler & Sean Chen & Sharon L. Donohue, 1993. "A Hybrid System Improves Claims Auditing at Blue Cross," Interfaces, INFORMS, vol. 23(6), pages 67-80, December.
    10. E Koskivaara, 2000. "Artificial neural network models for predicting patterns in auditing monthly balances," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(9), pages 1060-1069, September.
    11. Harlan L. Etheridge & Ram S. Sriram, 1997. "A comparison of the relative costs of financial distress models: artificial neural networks, logit and multivariate discriminant analysis," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 6(3), pages 235-248, September.
    12. Murugan Anandarajan & Picheng Lee & Asokan Anandarajan, 2001. "Bankruptcy prediction of financially stressed firms: an examination of the predictive accuracy of artificial neural networks," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 10(2), pages 69-81, June.
    13. Laurie Swinney, 1999. "Consideration of the social context of auditors’ reliance on expert system output during evaluation of loan loss reserves," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 8(3), pages 199-213, September.
    14. Sridhar Ramamoorti & Andrew D. Bailey Jr & Richard O. Traver, 1999. "Risk assessment in internal auditing: a neural network approach," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 8(3), pages 159-180, September.
    15. Mohammad Abdolmohammadi & Catherine Usoff, 2001. "A longitudinal study of applicable decision aids for detailed tasks in a financial audit," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 10(3), pages 139-154, September.
    16. Mohammad J. Abdolmohammadi, 1991. "Factors affecting auditors' perceptions of applicable decision aids for various audit tasks," Contemporary Accounting Research, John Wiley & Sons, vol. 7(2), pages 535-548, March.
    17. Mary Jane Lenard & Pervaiz Alam & David Booth & Gregory Madey, 2001. "Decision‐making capabilities of a hybrid system applied to the auditor's going‐concern assessment," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 10(1), pages 1-23, March.
    18. Peters, Jm, 1990. "A Cognitive Computational Model Of Risk Hypothesis Generation," Journal of Accounting Research, Wiley Blackwell, vol. 28, pages 83-103.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniel E. O'Leary, 2015. "The 50 Most Downloaded Papers in Intelligent Systems in Accounting, Finance and Management in 2014," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 22(4), pages 283-288, October.
    2. Moll, Jodie & Yigitbasioglu, Ogan, 2019. "The role of internet-related technologies in shaping the work of accountants: New directions for accounting research," The British Accounting Review, Elsevier, vol. 51(6).
    3. Chrysovalantis Gaganis & Fotios Pasiouras & Charalambos Spathis & Constantin Zopounidis, 2007. "A comparison of nearest neighbours, discriminant and logit models for auditing decisions," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 15(1‐2), pages 23-40, January.
    4. Abdel-Rahman kh. El-Dalabeeh & Mohammed Said AlZughoul, 2019. "The Impact of Expert Systems on Enhancing the General Controls over the Computerized Accounting Information Systems," 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. 9(4), pages 207-217, October.
    5. Amani, Farzaneh A. & Fadlalla, Adam M., 2017. "Data mining applications in accounting: A review of the literature and organizing framework," International Journal of Accounting Information Systems, Elsevier, vol. 24(C), pages 32-58.
    6. Luca Dal Bene & Paolo Franchi & Antonella Garna & Giacomo Pieraccioli & Monica Piovi & Paolo Torrico, 2022. "La digitalizzazione dei servizi di supporto in sanità. L?esperienza di ESTAR," MECOSAN, FrancoAngeli Editore, vol. 2022(123), pages 195-209.
    7. Kuang-Hua Hu & Fu-Hsiang Chen & Ming-Fu Hsu & Gwo-Hshiung Tzeng, 2023. "Governance of artificial intelligence applications in a business audit via a fusion fuzzy multiple rule-based decision-making model," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-31, December.
    8. Sinziana-Maria Rindasu & Ioan Dan Topor & Liliana Ionescu-Feleaga, 2023. "The Evolution of Management Accountants' Digital Skills in Industry 4.0: A Qualitative Approach," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 38-48, March.
    9. Downen, Tom & Kim, Sarah & Lee, Lorraine, 2024. "Algorithm aversion, emotions, and investor reaction: Does disclosing the use of AI influence investment decisions?," International Journal of Accounting Information Systems, Elsevier, vol. 52(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel E. O'Leary, 2009. "Downloads and citations in Intelligent Systems in Accounting, Finance and Management," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 16(1‐2), pages 21-31, January.
    2. Hussein A. Abdou & John Pointon, 2011. "Credit Scoring, Statistical Techniques And Evaluation Criteria: A Review Of The Literature," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 18(2-3), pages 59-88, April.
    3. Ravi Kumar, P. & Ravi, V., 2007. "Bankruptcy prediction in banks and firms via statistical and intelligent techniques - A review," European Journal of Operational Research, Elsevier, vol. 180(1), pages 1-28, July.
    4. Rais Ahmad Itoo & A. Selvarasu & José António Filipe, 2015. "Loan Products and Credit Scoring by Commercial Banks (India)," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 5(1), pages 851-851.
    5. Anandhi Bharadwaj & Vijay Karan & Radha K. Mahapatra & Uday S. Murthy & Ajay S. Vinze, 1994. "APX: An Integrated Knowledge‐Based System to Support Audit Planning," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 3(3), pages 149-164, August.
    6. Amani, Farzaneh A. & Fadlalla, Adam M., 2017. "Data mining applications in accounting: A review of the literature and organizing framework," International Journal of Accounting Information Systems, Elsevier, vol. 24(C), pages 32-58.
    7. David Alaminos & Agustín del Castillo & Manuel Ángel Fernández, 2016. "A Global Model for Bankruptcy Prediction," PLOS ONE, Public Library of Science, vol. 11(11), pages 1-18, November.
    8. Sajad Abdipour & Ahmad Nasseri & Mojtaba Akbarpour & Hossein Parsian & Shahrzad Zamani, 2013. "Integrating Neural Network and Colonial Competitive Algorithm: A New Approach for Predicting Bankruptcy in Tehran Security Exchange," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(11), pages 1528-1539, November.
    9. Yu Zhao & Huaming Du & Qing Li & Fuzhen Zhuang & Ji Liu & Gang Kou, 2022. "A Comprehensive Survey on Enterprise Financial Risk Analysis from Big Data Perspective," Papers 2211.14997, arXiv.org, revised May 2023.
    10. Brad S. Trinkle & Amelia A. Baldwin, 2007. "Interpretable credit model development via artificial neural networks," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 15(3‐4), pages 123-147, July.
    11. Ángel Beade & Manuel Rodríguez & José Santos, 2024. "Business failure prediction models with high and stable predictive power over time using genetic programming," Operational Research, Springer, vol. 24(3), pages 1-41, September.
    12. Tomasz Korol, 2020. "Assessment of Trajectories of Non-bankrupt and Bankrupt Enterprises," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 1113-1135.
    13. Şaban Çelik, 2013. "Micro Credit Risk Metrics: A Comprehensive Review," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 233-272, October.
    14. Marko Špiler & Tijana Matejić & Snežana Knežević & Marko Milašinović & Aleksandra Mitrović & Vesna Bogojević Arsić & Tijana Obradović & Dragoljub Simonović & Vukašin Despotović & Stefan Milojević & Mi, 2022. "Assessment of the Bankruptcy Risk in the Hotel Industry as a Condition of the COVID-19 Crisis Using Time-Delay Neural Networks," Sustainability, MDPI, vol. 15(1), pages 1-54, December.
    15. Davalos, Sergio & Gritta, Richard D. & Adrangi, Bahram, 2007. "Deriving Rules for Forecasting Air Carrier Financial Stress and Insolvency: A Genetic Algorithm Approach," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 46(2).
    16. Şaban Çelik & Bora Aktan & Bruce Burton, 2022. "Firm dynamics and bankruptcy processes: A new theoretical model," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(3), pages 567-591, April.
    17. Rais Ahmad Itoo & A. Selvarasu, 2017. "Loan products and Credit Scoring Methods by Commercial Banks," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 7(1), pages 1297-1297.
    18. Leila Bateni & Farshid Asghari, 2020. "Bankruptcy Prediction Using Logit and Genetic Algorithm Models: A Comparative Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 55(1), pages 335-348, January.
    19. Le, Hong Hanh & Viviani, Jean-Laurent, 2018. "Predicting bank failure: An improvement by implementing a machine-learning approach to classical financial ratios," Research in International Business and Finance, Elsevier, vol. 44(C), pages 16-25.
    20. Lin, Fengyi & Yeh, Ching Chiang & Lee, Meng Yuan, 2013. "A Hybrid Business Failure Prediction Model Using Locally Linear Embedding And Support Vector Machines," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 82-97, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:isacfm:v:14:y:2006:i:3:p:77-86. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.interscience.wiley.com/jpages/1099-1174/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.