Expert System for the Diagnosis of Banking rating during the Financial Audit Planning Phase
Author:
Lucian Cristian ENI, Ph. D. Student
JEL:
M42
DOI:
Keywords:
expert system, financial audit, computer assisted audit tools and techniques (CATTs), bank
Abstract:
The purpose of the study was the design of an expert system for the diagnostic of the banking rating based on the financial indicators` values. The expert system sets a rating (5 levels) for a Romanian bank, the rating being used by a financial auditor during the planning phase of a financial audit mission. By assessing the bank risk through rating, the financial auditor could establish more accurately the resources involved in the audit mission (budget, the size of audit team) or how spread should be the analytical procedures or the substantive tests. Basically, the research followed the main stages in the realisation of an expert system: the analysis of the problem domain and the formulation of the problem, the knowledge formalization, the conceptualisation, the implementation, the verification and the validation of the system. The research result is an expert system for auditing a bank using different financial indicators: solvability ratio, return on equity (ROE), liquidity ratio etc. To obtain this result, the author used an expert systems generator, Exsys, which permits the rapid deployment of an application. Although the expert system does not have a high level of complexity (50 production rules), it can be improved by increasing the knowledge base or by integration within other informatic system. The intention of the author was only to present a simple case study and to illustrate all the stages necessary to design an expert system that could be used in auditing. The study pointed out that the expert systems could be an important part of the computer assisted audit tools and techniques (CATTs). This type of software contribute to the improvement of the quality, the efficiency and the effectiveness of an audit mission. The future research on this topic could offer new case studies concerning the use of the expert systems for the internal or external auditing.\r\n\r\n \r\n