Formal Analysis of Segregation of Duties (SoD) in Accounting: A Computational Approach.

This study examines a computational framework for segregation of duties (SoD) in the design as well as implementation of accounting systems. The framework consists of a model of workflows in accounting systems based on workflow graphs, a partial order model of roles performed by the actors in the ac...

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Published in:Abacus Vol. 56; no. 2; pp. 165 - 213
Main Authors: Kim, Rosemary, Gangolly, Jagdish, Ravi, S. S., Rosenkrantz, Daniel J.
Format: Article
Published: Wiley-Blackwell Jun2020
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Formal Analysis of Segregation of Duties (SoD) in Accounting: A Computational Approach.
      aug:
        au:
          Kim, Rosemary
          Gangolly, Jagdish
          Ravi, S. S.
          Rosenkrantz, Daniel J.
        affil:
          Department of Accounting, Loyola Marymount University
          Department of Informatics, University at Albany – State University of New York
          Biocomplexity Institute and Initiative, University of Virginia
          Department of Computer Science, University at Albany – State University of New York
      su:
        Accounting
        Internal auditing
        Financial disclosure
        Linear programming
      sug:
        subj:
          Accounting
          Internal auditing
          Financial disclosure
          Linear programming
      keyword:
        Dynamic and static controls
        Internal controls analytics
        Segregation of duties (SoD)
        SoD rules
        Validity and verification of SoD
      ab: This study examines a computational framework for segregation of duties (SoD) in the design as well as implementation of accounting systems. The framework consists of a model of workflows in accounting systems based on workflow graphs, a partial order model of roles performed by the actors in the accounting system, and a specification of SoD rules. We develop a set of algorithms for four SoD rules that can be used in the enforcement of SoD. For the SoD rule that precludes task type conflicts, our results show that while compliance verification can be carried out efficiently, finding an SoD compliant assignment of tasks is computationally intractable. For those situations, we present an integer linear programming (ILP) formulation for finding compliant assignments using public domain ILP solvers. For the remaining three SoD rules, we demonstrate efficient ways of testing compliance for a given assignment as well as finding compliant assignments.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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