The Development of AudEx: An Audit Data Assessment System

Tools to assist auditors in making sound, complete, and consistent judgements have become increasingly important due to regulation, litigation, and the desire to increase audit effectiveness. Historically, expert systems have been problem specific and created from scratch. Such systems were challenging to update and had limited adaptability when applied to additional problem spaces. If an adaptable system is possible, then costs and time may be reduced related to production, testing, and implementation of quality audit tools. Increased availability of such tools could be a tremendous benefit to auditors. Using a design science research method, this paper describes the process used to create a fraud risk assessment audit tool by embedding audit rules into a generic expert system shell that is widely used in the medical field. The resulting decision and training aid can assist auditors in making fraud risk assessments. While prior research has addressed many components of the issue, the current system was created to address the current risk environment, and a variety of contexts of interest, as the risk environment changes. The system was evaluated by practicing auditors while completing a series of cases. Evaluation results support the benefits of the artifact when used to assist in fraud risk assessments.