The reliability of accounting internal control systems (AICS) is often viewed as a primary concern of auditors. Over the past three decades, several reliability models have been proposed for internal control. The main goal of these models is to provide an objective approach to evaluate the reliability of internal control systems. In addition, the models seek to assess the degree of audit reliance that can be placed on internal controls. This paper has a two‐fold objective: (1) to present an overview of the descriptive and prescriptive reliability models developed for the design and evaluation of internal control systems, and (2) to discuss the effects of various factors on the reliability assessment. Furthermore, two methods to estimate process reliabilities are presented and several numerical examples are provided to show the detailed calculations of the reliability and economic efficiency of accounting internal control systems.
Mohamed, A.M., Qureshi, M.A. and Behnezhad, A.R. (2005), "Reliability Evaluation and Design of AICS: A Survey of Models and Experiments", Review of Accounting and Finance, Vol. 4 No. 2, pp. 59-85. https://doi.org/10.1108/eb043423Download as .RIS
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