A formal algorithmic model compatible with the conceptual modeling of accounting information systems

Abstract

Accounting and computer science have been uneasy partners in the development of accounting information systems. The history of their association has generally led end users to do the best they could in matching the needs of accounting systems to the demands of current hardware and software developments. While the results have been impressive, recent developments in computer science make it possible to approach the modeling of accounting information systems in a manner more consistent with the accounting model than previously possible. This paper, motivated by program verification issues from an auditor's viewpoint, introduces a functional approach to accounting systems development. The result is a formal algorithmic model of accounting that is consistent with current developments in computer science. A number of benefits are derived from the approach, including: (1) natural representation; (2) ease of coding, design and modification; and (3) verification capabilities.