IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v23y2012i2p453-473.html
   My bibliography  Save this article

Managing Data Quality Risk in Accounting Information Systems

Author

Listed:
  • Xue Bai

    (Department of Operations and Information Management, School of Business, University of Connecticut, Storrs, Connecticut 06269)

  • Manuel Nunez

    (Department of Operations and Information Management, School of Business, University of Connecticut, Storrs, Connecticut 06269)

  • Jayant R. Kalagnanam

    (IBM T. J. Watson Research Center, Yorktown Heights, New York 10598)

Abstract

The quality of data contained in accounting information systems has a significant impact on both internal business decision making and external regulatory compliance. Although a considerable body of literature exists on the issue of data quality, there has been little research done at the task level of a business process to develop effective control strategies to mitigate data quality risks. In this paper, we present a methodology for managing the risks associated with the quality of data in accounting information systems. This methodology first models the error evolution process in transactional data flow as a dynamical process; it then finds optimal control policies at the task level to mitigate the data quality-related risks using a Markov decision process model with risk constraints. The proposed Markov decision methodology facilitates the modeling of multiple dimensions of error dependence, captures the correlated impact among control procedures, and identifies an optimal control policy. A revenue realization process of an international production company is used to illustrate this methodology.

Suggested Citation

  • Xue Bai & Manuel Nunez & Jayant R. Kalagnanam, 2012. "Managing Data Quality Risk in Accounting Information Systems," Information Systems Research, INFORMS, vol. 23(2), pages 453-473, June.
    • Handle: RePEc:inm:orisre:v:23:y:2012:i:2:p:453-473
    DOI: 10.1287/isre.1110.0371
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/isre.1110.0371
    Download Restriction: no
    File URL: https://libkey.io/10.1287/isre.1110.0371?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. Donald P. Ballou & Harold L. Pazer, 1985. "Modeling Data and Process Quality in Multi-Input, Multi-Output Information Systems," Management Science, INFORMS, vol. 31(2), pages 150-162, February.
    2. Robert Nado & Melanie M. Chams & Jeff Delisio & Walter Hamscher, 1996. "Comet: An Application of Model-Based Reasoning to Accounting Systems," Working Papers _044, Price Waterhouse.
    3. Yonghua Ji & Vijay S. Mookerjee & Suresh P. Sethi, 2005. "Optimal Software Development: A Control Theoretic Approach," Information Systems Research, INFORMS, vol. 16(3), pages 292-306, September.
    4. Knechel, Wr, 1985. "An Analysis Of Alternative Error Assumptions In Modeling The Reliability Of Accounting Systems," Journal of Accounting Research, Wiley Blackwell, vol. 23(1), pages 194-212.
    5. Sherry X. Sun & J. Leon Zhao & Jay F. Nunamaker & Olivia R. Liu Sheng, 2006. "Formulating the Data-Flow Perspective for Business Process Management," Information Systems Research, INFORMS, vol. 17(4), pages 374-391, December.
    6. Ramayya Krishnan & James Peters & Rema Padman & David Kaplan, 2005. "On Data Reliability Assessment in Accounting Information Systems," Information Systems Research, INFORMS, vol. 16(3), pages 307-326, September.
    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. Xiao, Yu & Lu, Louis Y.Y. & Liu, John S. & Zhou, Zhili, 2014. "Knowledge diffusion path analysis of data quality literature: A main path analysis," Journal of Informetrics, Elsevier, vol. 8(3), pages 594-605.
    2. Xitong Li & Hongwei Zhu & Luo Zuo, 2021. "Reporting Technologies and Textual Readability: Evidence from the XBRL Mandate," Information Systems Research, INFORMS, vol. 32(3), pages 1025-1042, September.
    3. Nigel P. Melville & Ryan Whisnant, 2014. "Energy and Carbon Management Systems," Journal of Industrial Ecology, Yale University, vol. 18(6), pages 920-930, December.
    4. Debabrata Dey & Subodha Kumar, 2013. "Data Quality of Query Results with Generalized Selection Conditions," Operations Research, INFORMS, vol. 61(1), pages 17-31, February.
    5. 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.
    6. Rikhardsson, Pall & Yigitbasioglu, Ogan, 2018. "Business intelligence & analytics in management accounting research: Status and future focus," International Journal of Accounting Information Systems, Elsevier, vol. 29(C), pages 37-58.
    7. Youssef Saida, 2021. "Predicting the Virtual Financial Communication Content: A Discriminant Analysis Applied on Small and Medium Stocks," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(11), pages 156-156, July.

    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. Ramayya Krishnan & James Peters & Rema Padman & David Kaplan, 2005. "On Data Reliability Assessment in Accounting Information Systems," Information Systems Research, INFORMS, vol. 16(3), pages 307-326, September.
    2. Xiao, Yu & Lu, Louis Y.Y. & Liu, John S. & Zhou, Zhili, 2014. "Knowledge diffusion path analysis of data quality literature: A main path analysis," Journal of Informetrics, Elsevier, vol. 8(3), pages 594-605.
    3. Xue Bai & Ramayya Krishnan & Rema Padman & Harry Jiannan Wang, 2013. "On Risk Management with Information Flows in Business Processes," Information Systems Research, INFORMS, vol. 24(3), pages 731-749, September.
    4. Choo Yeon Kim & Seong Soo Cha, 2023. "Effect of SNS Characteristics for Dining Out on Customer Satisfaction and Online Word of Mouth," SAGE Open, , vol. 13(3), pages 21582440231, September.
    5. Risto Silvola & Janne Harkonen & Olli Vilppola & Hanna Kropsu-Vehkapera & Harri Haapasalo, 2016. "Data quality assessment and improvement," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 22(1), pages 62-81.
    6. Yabing Jiang & Hong Guo, 2012. "Design of Consumer Review Systems and Product Pricing," Working Papers 12-10, NET Institute.
    7. Xiangyu Chang & Yinghui Huang & Mei Li & Xin Bo & Subodha Kumar, 2021. "Efficient Detection of Environmental Violators: A Big Data Approach," Production and Operations Management, Production and Operations Management Society, vol. 30(5), pages 1246-1270, May.
    8. Xitong Li & Hongwei Zhu & Luo Zuo, 2021. "Reporting Technologies and Textual Readability: Evidence from the XBRL Mandate," Information Systems Research, INFORMS, vol. 32(3), pages 1025-1042, September.
    9. repec:jtr:journl:v:4:y:2012:i:1:p:12-37 is not listed on IDEAS
    10. 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.
    11. Sabrina Sicari & Cinzia Cappiello & Francesco Pellegrini & Daniele Miorandi & Alberto Coen-Porisini, 2016. "A security-and quality-aware system architecture for Internet of Things," Information Systems Frontiers, Springer, vol. 18(4), pages 665-677, August.
    12. Bettina Distel & Holger Koelmann & Ralf Plattfaut & Jörg Becker, 2022. "Watch who you trust! A structured literature review to build a typology of e-government risks," Information Systems and e-Business Management, Springer, vol. 20(4), pages 789-818, December.
    13. Habib Ntwoku & Solomon Negash & Peter Meso, 2017. "ICT adoption in Cameroon SME: application of Bass diffusion model," Information Technology for Development, Taylor & Francis Journals, vol. 23(2), pages 296-317, April.
    14. Arava Tsoury & Pnina Soffer & Iris Reinhartz-Berger, 2020. "Data Impact Analysis in Business Processes," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(1), pages 41-60, February.
    15. Avinash K. Shrivastava & Vivek Kumar & P. K. Kapur & Ompal Singh, 2020. "Software release and testing stop time decision with change point," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 11(2), pages 196-207, July.
    16. Karthik Kannan & Mohammad S. Rahman & Mohit Tawarmalani, 2016. "Economic and Policy Implications of Restricted Patch Distribution," Management Science, INFORMS, vol. 62(11), pages 3161-3182, November.
    17. Michnik, Jerzy & Lo, Mei-Chen, 2009. "The assessment of the information quality with the aid of multiple criteria analysis," European Journal of Operational Research, Elsevier, vol. 195(3), pages 850-856, June.
    18. Prat, Nicolas & Madnick, Stuart E., 2008. "Evaluating and Aggregating Data Believability across Quality Sub-Dimensions and Data Lineage," Working papers 40085, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    19. Donald Ballou & Richard Wang & Harold Pazer & Giri Kumar Tayi, 1998. "Modeling Information Manufacturing Systems to Determine Information Product Quality," Management Science, INFORMS, vol. 44(4), pages 462-484, April.
    20. Luning Liu & Jingrui Ju & Yuqiang Feng, 2017. "An extensible framework for collaborative e-governance platform workflow modeling using data flow analysis," Information Technology for Development, Taylor & Francis Journals, vol. 23(3), pages 415-437, July.
    21. Chang, Hsin Hsin & Wang, I. Chen, 2011. "Enterprise Information Portals in support of business process, design teams and collaborative commerce performance," International Journal of Information Management, Elsevier, vol. 31(2), pages 171-182.

    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:inm:orisre:v:23:y:2012:i:2:p:453-473. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.