Expert Systems

Expert Systems are computer programs that are designed to emulate the analysis process which an expert uses in reasoning a judgment on a particular subject domain. Expert systems have become more common in the accounting profession and are used by several business organizations. The primary goal of an expert system is to be used as a decision aid providing expert-level knowledge to a novice lacking in the necessary experience to make a particular decision. The best use of expert systems is in solving semi-structured problems.

Rule-based expert systems have three major components:

1.User interface

2.Inference engine

3.Knowledge base

The user interacts with the expert systems by means of the user interface, which consists of a query facility and an explanation facility. The query facility poses questions to the novice user concerning a particular subject domain. The answers to the questions are translated by the inference engine which accesses knowledge from the knowledge base. In response to the particular answer given by the expert system user, the inference engine will access the knowledge base and infer as to the next appropriate question. The knowledge base contains the facts and heuristics that are derived from an expert on the particular subject domain being modeled. Upon completing the reasoning process, the expert system will provide a solution based upon the facts collected. An explanation of the reasoning process can be examined using the explanation facility in the expert system.

More discussion of expert systems and the use of expert systems in accounting may be found at the following locations.

Expert System Tutorial A basic tutorial on artificial intelligence with a section on expert systems.
Accounting Expert Systems Applications Several links to expert systems being used in accounting.

This introduction to expert systems should provide you with a basic understanding of expert systems and how they are currently being used in accounting applications. To provide you with some additional understanding of expert systems, two expert system applications are provided for your use.

Two projects using expert systems developed using VP-Expert are provided:

ICE - This expert system assists in evaluating the internal controls in the payroll processing system.
TP - This expert system assists in making transfer pricing decisions.