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Model-based auditing using REA

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  • Weigand, Hans
  • Elsas, Philip

Abstract

The recent financial crisis has renewed interest in the value of the owner-ordered auditing tradition that starts from society's long-term interest rather than management interest. This tradition uses a model-based auditing approach in which control requirements are derived in a principled way. A problem with this approach is that it has been proven hard to apply it in modern complex organizations. Making it feasible requires at least an adequate enterprise modeling approach. In this paper, it is shown that the REA ontology fulfills most of the requirements for such a model-based approach. The analysis also suggests some directions in which REA can be extended.

Suggested Citation

  • Weigand, Hans & Elsas, Philip, 2012. "Model-based auditing using REA," International Journal of Accounting Information Systems, Elsevier, vol. 13(3), pages 287-310.
    • Handle: RePEc:eee:ijoais:v:13:y:2012:i:3:p:287-310
    DOI: 10.1016/j.accinf.2012.06.013
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    References listed on IDEAS

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    1. F. Gailly & G. Poels, 2007. "Ontology-driven Business Modelling: Improving the Conceptual Representation of the REA Ontology," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/444, Ghent University, Faculty of Economics and Business Administration.
    2. Gaspar, Jose-Miguel & Massa, Massimo & Matos, Pedro, 2005. "Shareholder investment horizons and the market for corporate control," Journal of Financial Economics, Elsevier, vol. 76(1), pages 135-165, April.
    3. 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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    Cited by:

    1. W. Kobelsky, Kevin, 2014. "A conceptual model for segregation of duties: Integrating theory and practice for manual and IT-supported processes," International Journal of Accounting Information Systems, Elsevier, vol. 15(4), pages 304-322.
    2. Wang, Yuxin & Tian, Yifu & Teixeira, André & Hulstijn, Joris & Tan, Yao-Hua, 2016. "Fault detection and diagnosis for compliance monitoring in international supply chains," Other publications TiSEM 3a2a4fd2-b5be-4f65-ab7b-d, Tilburg University, School of Economics and Management.
    3. Heise, David & Strecker, Stefan & Frank, Ulrich, 2014. "ControlML: A domain-specific modeling language in support of assessing internal controls and the internal control system," International Journal of Accounting Information Systems, Elsevier, vol. 15(3), pages 224-245.
    4. Jayasinghe Arachchig, J., 2013. "A unified modeling framework for service design," Other publications TiSEM 6a285c11-de61-4bbc-9a6c-4, Tilburg University, School of Economics and Management.
    5. Sohei Ito & Dominik Vymětal & Roman Šperka & Michal Halaška, 2018. "Process mining of a multi-agent business simulator," Computational and Mathematical Organization Theory, Springer, vol. 24(4), pages 500-531, December.
    6. Dominik Vymetal & Sohei Ito, 2016. "The Formalization of a Generic Trading Company Model Using Software Agents as Active Elements," Working Papers 0029, Silesian University, School of Business Administration.
    7. repec:opa:wpaper:0015 is not listed on IDEAS
    8. Veenstra, Albert & Hulstijn, Joris & Griffioen, Paul, 2014. "Control and Monitoring in International Logistics Chains," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Blecker, Thorsten & Kersten, Wolfgang & Ringle, Christian M. (ed.), Innovative Methods in Logistics and Supply Chain Management: Current Issues and Emerging Practices. Proceedings of the Hamburg International Conferenc, volume 19, pages 365-390, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    9. 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.

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