The Use of Qualitative and Causal Reasoning in Analytical Review Procedures

Abstract

The use of analytic or quantitative models in auditing is still very limited and often informal. One of the more well developed areas in auditing is the use of models for analytical review. The objective of this research is to extend and apply the current qualitative and causal reasoning technology to accounting, especially analytical review procedures. Qualitative reasoning, initially developed and dedicated to physics, captures the structure, behaviors and the causality underlying the real model. It is believed that the introduction of qualitative and causal reasoning based on an understanding of the business environment can substantially improve intelligent support of current decision support systems.