Managing Data Quality Risk in Accounting Information Systems.

Author List: Bai, Xue; Nunez, Manuel; Kalagnanam, Jayant R.;
Information Systems Research, 2012, Volume 23, Issue 2, Page 453-473.
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.
Keywords: accounting information systems; audit; constrained Markov decision processes; control; data quality; risk
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#264 0.163 risk risks management associated managing financial appropriate losses expected future literature reduce loss approach alternative mitigate failures failure cause mitigation
#6 0.125 data used develop multiple approaches collection based research classes aspect single literature profiles means crowd collected trend accuracy databases accurate
#67 0.097 production manufacturing marketing information performance systems level impact plant model monitor does strategies 500 unit present fortune integrated sales plants
#69 0.091 process business reengineering processes bpr redesign paper research suggests provide past improvements manage enable organizations regarding focal cycle creating issues
#8 0.076 decision making decisions decision-making makers use quality improve performance managers process better results time managerial task significantly help indicate maker
#280 0.076 control controls formal systems mechanisms modes clan informal used internal literature outsourced outcome theory configuration attempts evolution authority complementary little
#204 0.068 goals goal research setting achieve accounting behavior multiple meet make constraints differing ability particularly association set single conflicting promotes and/or
#115 0.066 quality different servqual service high-quality difference used quantity importance use measure framework impact assurance better include means van dimensions assessing
#294 0.058 development systems methodology methodologies information framework approach approaches paper analysis use presented applied assumptions based proposed described examines basis proposes