Reducing Risk in the Enterprise: Proposal for a Hybrid Audit Expert System

This paper theorizes the use of a hybrid expert system to support a complete audit of financial statements for an enterprise. The expert system proposed would support the audit process by using two types of artificial intelligence technologies: case-based reasoning and fuzzy logic technologies. The case base and automated reasoning recommendations would give the auditing firm another insight on the audit. Unlike previous audit expert systems, this system is intended to focus broadly on an enterprise’s entire financial statement audit process; it combines a case based knowledge representation with fuzzy logic processing. The attempt at capturing a wide domain is necessary to support organizational decision-making. Focusing on narrow decision points within an audit process limits the users and usefulness of the system.