Data analytics promises to detect behavioral patterns, which may be used to improve decision making. However, decisions need to motivated, and they are often motivated by models. In this paper we explore the interplay between data analytics and process modeling, specifically in normative settings. We look specifically at value nets, mathematical models of the flow of money and goods, as used in accounting. Such models can be used to analyze the proportions of various flows, such as resources consumed and products produced. Such analyses can be used in the planning and control cycle, for forecasting, setting a budget, testing and possibly adjusting the budget. In other words, it can be used for adaptive normative modeling. We look in particular at a case study of a provider of public transport services for school children. The case shows that the use of value nets for analysis of proportions is (i) feasible, and (ii) useful, in the sense that it provides valuable new insights about the revenue model.
Much legal evidence is being generated by and stored in information systems. In this paper we look at evidence from an auditing point of view. Auditors rely on evidence of the party being audited, who may have a legitimate or illegitimate interest to manipulate it. To assess the quality of audit evidence, we argue for an approach called model-based auditing. It is based on a mathematically precise model of the expected relationships between the flow of money and the flow of goods or services. Such equations are used for cross verification. If the equations do not hold, either something is wrong (violation) or some underlying assumption is false (exception). To show the usefulness of the approach, we look in particular at a case study of a legal dispute about automated contract monitoring. A precise revenue model is instrumental in demonstrating that the data set does indeed constitute appropriate evidence to settle the case.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.