Autonomous internal control system for small to medium firms

  • Authors:

  • M. Lourdes Borrajo;Juan M. Corchado;J. Carlos Yáñez;Florentino Fdez-Riverola;Fernando Díaz

  • Affiliations:

  • Dept. Informática, University of Vigo, Escuela Superior de Ingeniería Informática, Edificio Politécnico, Ourense, Spain;Departamento de Informática y Automática, University of Salamanca, Salamanca, Spain;Department of Financial Accounting, University of Vigo, Ourense, Spain;Dept. Informática, University of Vigo, Escuela Superior de Ingeniería Informática, Edificio Politécnico, Ourense, Spain;Dept. Informática, University of Valladolid, Escuela Universitaria de Informática, Segovia, Spain

  • Venue:
  • ICCBR'05 Proceedings of the 6th international conference on Case-Based Reasoning Research and Development
  • Year:
  • 2005

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Abstract

Small to medium enterprises require an internal control mechanism in order to monitor their modus operandi and to analyse whether they are achieving their goals. A tool for the decision support process has been developed based on a case-based reasoning system that automates the internal control process. The objective of the system is to facilitate the process of internal auditing. The system analyses the data that characterises each one of the activities carried out by the firm, then determines the state of each activity, calculates the associated risk, detects the erroneous processes, and generates recommendations to improve these processes. The developed model is composed of two case-based reasoning systems. One is used to identify the activities that may be improved and the other to determine how the activities could be improved. Each of the two subsystems uses a different problem solving method in each of the steps of the reasoning cycle. The system has been tested in 22 small and medium companies in the textile sector, located in the northwest of Spain during the last 29 months and the results obtained have been very encouraging.