Virtual auditing agents: the EDGAR Agent challenge

Abstract

Intelligent agents can be used as agents of organizational change. This potential exists in the domain of accounting audit, where much of what is currently done manually in batch mode could be done continuously and on-line. We discuss the use of intelligent Internet agents as a way of changing and expanding audit practices in the virtual world. A quality/service framework is presented that suggests ways that accounting firms can evolve in this era of on-line opportunities. The EDGAR Agent is presented as an example of an intelligent Internet agent that gathers financial information. The challenges involved in the development of the EDGAR Agent are analyzed, providing insight into the practical aspects of agent technology designed for a specific business domain. A test of the agent is presented, with comments and suggestions from financial practitioners that will be integrated into the research stream.