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CHAPTER 16
AUDITING COMPUTER PROCESSING:
EXPERT SYSTEMS
Expert Systemscan be defined in a simple manner as computer
programs that employ unique
programming techniques to provide users within prepackaged
expertise in a particular field.
BASICS CONCEPTS AND TERMINOLOGY OF EXPERT SYSTEMS
The two basic components of the expert system are its knowledge
base and its inference engine.
Knowledge basecontains rules, facts, and information used in
formulating a solution; solving problems
and helping users reach their goals.
Inference Engineis a computer program that contains the
analytical framework for generating and
explaining advice to the user.
User Interferenceprovides the communication between the
inference engine and the system user.
Explanation Facilityhelps the user understand why certain
questions are asked or why specific
conclusions are reached.
TERMINOLOGY
1. Information Organization Techniquesthree techniques used to
organize information in theknowledge base include if-then rules,
framing and semantic networks.
a. If-then rulesinclude a declaration, condition, and an action.
Expert systems using the rulerepresentation scheme are sometimes
called production systems.
b. Framing organize information around expected events. A frame
is a group of attributesthat describes a given object.
c. Semantic Networksare another approach to organizing
information. These networksfocus on objects and their
relationships.
2. Inference Searching Techniques refer to how and the order in
which the inference engine willuse the knowledge data in the
knowledge base.
a. Forward chainingdevelops solutions from facts. It is based on
inductive reasoning.b. Backward chainingbegins with the results and
moves backwards. It is based on deductive
reasoning.
c. Searching strategiesinvolve describing a desired solution as
a goal and the set of possiblesteps leading from initial conditions
to the goal as a search space.
1. Depth-first searchfollows a single path to its end, reaches a
conclusion and thenfollows another single path if appropriate.
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2. Breadth-first searchsimultaneously examines all paths
starting with the first stepfor each one then moving to the second
step for each one.
3. Heuristic searchemploys rules of thumb to help solve problems
by reducing thesearch space.
3. Expert Systems Personnelamong the new terms the computer
auditor must contend with inworking with expert systems are those
identifying various personnel.
a. Domain expertis the person who is recognized as having the
knowledge and know-how necessary to solve a particular type or
class of problem.
b. Knowledge engineerdefines the problems to be solved,
discovers the basicconcepts involved through and extended series of
interactions with the domain
expert, and loads the information with related rules into the
knowledge base.
EXPERT SYSTEMS AS A TOOL OF THE AUDITOR
1. Planning the Audita. Evaluating Audit Riskb. Specify Audit
Materialityc. Performing Analytical Procedures
2. Audit Testinga. Evaluating the control structure by
performing tests of controls and related activities to
assess control risk
b. Test of details of transactions and account balance.3.
Issuance of Financial Statements
EXPERT SYSTEMS AS A TARGET OF THE AUDIT
1. Expert Systems Processing of Accounting Information- Expert
systems used in the processing ofaccounting information are of two
types:
a. Systems that directly affect the balances reported in
financial statements because they areinvolve in the processing of
significant accounting transactions.
b. Systems that indirectly affect the balances reported in
financial statements because theyprovide the auditor with
information about the reasonableness of that reported
informations
2. Expert Systems Control Structurea. General Controls
minimallyaffected be experts systems technology include:
1. Organization controls, personnel practices, and standard
operating procedures.2. Hardware and systems software controls3.
Systems security controls
By:
Lopez, Anna Marie
Lozada, Jonalyn
Tabuac, Luzveminda
Tandoc, Cherry Mae
Tugade, Donna Grace
Zapanta, Julie Ann
N81/8-9am
