Paper Title
Decision Support Systems for Government Auditing: The Role of AI in Ensuring Transparency and Compliance
Keywords
- decision support systems (dss)
- government auditing
- artificial intelligence (ai)
- public sector transparency
- regulatory compliance
- audit automation
- machine learning
- fraud detection
- accountability
- risk assessment
- data analytics
- e-governance
- internal controls
- digital audit tools
- ethical ai
Journal
Publication Info
Volume: 36 | Issue: 6 | Pages: 493-532
Published On
December, 2023
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Abstract
In a world growing increasingly entangled in the web of data and its profound implications, Audit and compliance departments face unprecedented challenges. The sheer magnitude of data generated today necessitates access to new tools for the understanding and interpretation of such data, or simply for its effective storage. Traditionally, these departments relied upon the analysis of a small sample of transactions. However, the changing reality forces auditors to reconsider their approach. A high-impact Compliance Access Control (CAC) is to guarantee timely and extensive compliance verification of all data, as mandated by legislation. In this regard, businesses require a “Decision Support System for government auditing.” The system should ensure inquiry compliance by means of automatically generating the relevant audit queries, given the transaction data and legislative input. This paper proposes a semi-automatic solution and demonstrates how a few programmatically solvable problems can give rise to the desired compliance access control tools. An implementation of the proposed system is illustrated through a case study in financial services. When data and its associated interpretation are the core assets at stake, the lack of automated tools might jeopardize the very business model. The advent of the so-called data economy 4.0 has deeply transformed the nature of auditing and compliance assurance. Data is now a product created by clients and resold to third parties. But the data revolution comes with a twist: Legislators have caught up with its growing power as an asset and, in turn, prescribed mandates for the audit and compliance departments. In this regard, one of the most radical changes is the legislation requiring inquiry compliance with all data, and not just a sample. City financial supervisors have led the charge in promulgating such legislation, fostering an epochal shift in the audit industry towards tools capable of guaranteeing inquiry compliance with all data.
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