Modeling the Assertion Based Audit Approach into REA Using the Value Cycle Model

• In Event: Information Utility

Abstract

In Weigand and Elsas [2012], the authors consider the linkage of the REA business ontology to the Value Cycle Model (VCM) of auditing which appears in the Dutch tradition of auditing companies. Here we extend that model by 1) adding a formalization of the financial statement audit process and by 2) considering REA in an assertion based audit approach (ABA). The assertion based approach has been used in the United States for a number of years but was best formalized by Leslie, et al. [1986].

Authors

• Rob Nehmer, Oakland University

• Hans Weigand, Tilburg University

• Philip Elsas, ComputationalAuditing.com