Pattern Directed Auditing of Business Procedures: A Logic Programming, Model Checking Approach

66 Pages Posted: 31 May 2012  

Kuo Tay Chen

National Taiwan University

Ronald Marlin Lee

Florida International University (FIU) - Department of Decision Sciences & Information Systems

Vu Hoang Nguyen

Economics University - Hochiminh City

Date Written: September 30, 2011

Abstract

Due to the stimulus from SOX as well as increasing use of computer-mediated workflows, automated methods for auditing internal control procedures are in increasing demand. Here we present a model checking technique for exhaustively analyzing internal control procedures to detect control weaknesses based on a specified set of control principles. We presume the control procedure to be represented in a computational format. Indeed, a computational version of the procedure currently in operation in the company may be directly accessible from the organization’s ERP and/or workflow system. By using logic-programming based pattern matching combined with model checking techniques we are able to identify sequences of actions in the procedure where the specified control principles are violated. Sample executions from our prototype system are included to demonstrate computational feasibility.

Keywords: Business Procedures; Pattern Recognition, Internal Control Evaluation, Petri-Net Modeling

Suggested Citation

Chen, Kuo Tay and Lee, Ronald Marlin and Nguyen, Vu Hoang, Pattern Directed Auditing of Business Procedures: A Logic Programming, Model Checking Approach (September 30, 2011). Available at SSRN: https://ssrn.com/abstract=2070759 or http://dx.doi.org/10.2139/ssrn.2070759

Kuo Tay Chen

National Taiwan University ( email )

1 Sec. 4, Roosevelt Road,
Taipei 106, 106
Taiwan

Ronald Marlin Lee (Contact Author)

Florida International University (FIU) - Department of Decision Sciences & Information Systems ( email )

Florida International University
Miami, FL 33199
United States

Vu Hoang Nguyen

Economics University - Hochiminh City ( email )

59C Nguyen Dinh Chieu St
District 3
Hochiminh City
Vietnam

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