COMET: An Application of Model-Based Reasoning to Accounting Systems

An important problem faced by auditors is gauging how much reliance can be placed on the accounting systems that process millions of transactions to produce the numbers summarized in a company's financial statements. In a complex accounting system, it can be an extremely difficult task for the auditor to anticipate the possible errors that can occur and evaluate the effectiveness of the controls at detecting them. An accurate analysis must take into account the unique features of each company's business processes. An auditor uses COMET to create a hierarchical flowchart model that describes the intended processing of business transactions by an accounting system and the operation of its controls.