Patent Number: 6,311,166

Title: Method for analyzing effectiveness of internal controls in a model of anaccounting system

Abstract: A method is provided for assessing control risk in a model-based reasoningsystem used for analyzing financial accounting systems by decomposing andquantifying the risk factors in the model so that the risk factors can beused to determine areas in the accounting system where sufficient controlis lacking and to determine which controls are key and thus should besubject to detailed testing. Factors quantified are failure impact risk,failure coverage risk, allowable risk, control detection risk, controlstrength, control defeat factor, attenuation factor, and controlcontribution. The present invention is used to enhance a hierarchical flowchart generating system, such as the Comet system, by providing riskanalysis operative on a particular class of hierarchically structured flowcharts.

Inventors: Nado; Robert A. (Mountian View, CA), Chams; Mitra M. (Mountian View, CA), Delisio; Jefferson L. (Mountian View, CA), Hamscher; Walter C. (Concord, MA), Halliday; Robert W. (West-Lothian, GB)


International Classification:

Expiration Date: 10/32013