Transcript A Logical Framework for Exception Handling in ADOME

Alert Driven Process Integration and
Exception Handing:
A Case Study on Audit Confirmation with
Web Service
Mandy Y.S. Tong
Dept. of Computer Science,
Hong Kong Baptist University
[email protected]
Dickson K. W. CHIU
Senior Member, IEEE
Dickson Computer Systems
Hong Kong
[email protected],
[email protected]
Introduction
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Limited adoption of contemporary IT in audit profession
Some audit software packages: but
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each audit assignment have its own characteristics
auditors device an audit planning for each assignment
costly
cannot handle cross-organizational collaboration / process
automation
Not many audit firms adopt such audit software
ADAMS
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Case Study:
Audit Confirmation Process
Enquiry for the
confirmation
balance
Auditor
Client’s Debtors/
Creditors
Request for balance
confirmation
Confirm re-sent
of confirmation
System
Updated the
AR/AP report
Report of client
seeking help
Admin. Staff
ADAMS
Report for
balance not
yet confirmed
Seek
help
Updated
information
Balance
input
CPA Firm’s Clients
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Typical Problems in Auditing Profession
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Quite difficult to collect adequate confirmations on
time for a reliable audit process
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required by professional auditing guidelines
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HKICPA - HKSA 500 and HKSA 505
especially if a client’s business partners are from overseas
Alternative and less precise methods to verify the
account balances
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ADAMS
check purchase order, invoices, delivery note, shipping
documents, and receipt/payment of outstanding balances
often manual and much more time-consuming
audit fee of an assignment is based on working time
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Solution Approach Overview
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Monitoring of the overall audit process
Alerts management for monitoring and logging
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Web services
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Timeliness
Management of communications
Exception handling
Integrate processes and information
improve communications
Alert-driven Audit Management System (ADAMS)
ADAMS
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System Architecture
Clients
Clients’ Business
Partners
Auditors on mobile
Bank
Internet
Balance
Confirmation
System
Access Administration
System
Job and Assignment
Monitoring
System
ADAMS
Alert
Management
System
Status
Monitor
Web Services Interface
Client Accounts
Information
System
Collaboration
Process
Enactor
Event
Adapter
ECA Rules,
Scheduling Rules,
Event Repository,
Event Subsciption
List
Timer
Requirement
Enforcer
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Example Exception Handling
Samples Selection
At least one
sample selected
One sample or more than
one sample selected
No. of Sample
Selected
Normal Process
More than one
sample
No sample selected
Condition
Rearrangement by
senior manager
Only one sample
selected
Error made in the balance
input process
Ask client to re-input
the balance
Yes
No
ADAMS
Send message to senior manager
and select samples manually
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Other Example Exceptions
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Extremely low confirmation response rate
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ADAMS
Daily response report to the auditor for monitoring
Send the reminder alert (including automated fax) to business
partners
Adjust the dates to send reminder
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Web Services Based Integration
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Interfaces different process enactment systems,
enforcement system, and exception handling
Offers a unified platform for both manual and
programmatic interfaces
Automates the data and process integration of the
ADAMS with their existing accounting systems
ADAMS
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Key Web Services for Clients
Service
Entering balance
Adjusting balance
Adjusting contact
information
Input
Debtor/creditor Name
Reference Number
Reference Number
Debtor/creditor Code
Original Outstanding
balance
Debtor/creditor Name
E-mail address
New Outstanding
balance
Debtor/creditor Code
Outstanding Balance
New balance aging
Original E-mail address
Balance aging
Output
ADAMS
New E-mail address
Reference Number
New Reference Number
New Reference Number
Confirmation Deadline
Confirmation Message
Confirmation Message
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Key Web Services for Client’s
Debtors/Creditors
Service
Balance Confirmation
Balance Adjustment
Input
Debtor/creditor Name
Reference Number
Debtor/creditor Code
Debtor/creditor Name
Password
Password
Outstanding Balance
Original Outstanding balance
Balance aging
New Outstanding balance
New Balance aging
Output
ADAMS
Reference Number
New Reference Number
Confirmation Deadline
Confirmation Message
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Conclusion
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ADAMS effectively manages the workflow auditing
process
Automating existing workflow to achieve timeliness
Application of alert mechanism and Web services
Integrates processes and data among different parties
Effective decision making and exception handling can
be achieved
ADAMS
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Future Work
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More integration: Link up to the bank systems
Detailed performance evaluation of the system
Compare the response time and service quality to the
existing practice
Use questionnaires to evaluate the satisfaction of
various stakeholders
Security and privacy issues
Apply to another professional practices such as
solicitors firm
ADAMS
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Question and Answer
Thank you!
ADAMS
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