Title: Equational zero vector databases, non-equational databases, and inherent internal control

Authors: Roberta Ann Barra, Arline Savage, Jeff J. Tsay

Addresses: College of Business and Economics, University of Hawai'i at Hilo, 200 West Kawili St., Hilo, HI 96720, USA. ' Orfalea College of Business, California Polytechnic State University, 1 Grand Avenue, San Luis Obispo, CA 93407, USA. ' College of Business, University of Texas at Arlington 701 S. West Street, Arlington, Texas 76019-0468, USA

Abstract: Equational zero vector accounting systems, based on duality principles and the double-entry model, were designed as ontological control systems to help prevent and detect fraud and errors inherent in non-equational, single-entry systems. Non-equational systems lend themselves to fraud and errors to a larger degree because the internal control inherent in an equational zero vector system has no substitute. We use an analytical analysis methodology to show that an equational zero vector system provides superior inherent internal control over data completeness and data reliability. In the accounting information systems area, the most popular modern non-equational system, the resource-event-agent model, is increasingly being promoted as a replacement for the equational zero vector accounting system. We contend that, although non-equational accounting system frameworks can be modelled with controls, they do not achieve the degree of control inherent in an equational zero vector accounting system without becoming an equational zero vector accounting system.

Keywords: accounting information systems; AIS; non-equational databases; COBIT; double entry; equational zero vector databases; internal control; resource-event-agent; REA; fraud detection; error detection; ontological control; data completeness; data reliability.

DOI: 10.1504/IJBIS.2010.035050

International Journal of Business Information Systems, 2010 Vol.6 No.3, pp.354 - 377

Published online: 01 Sep 2010 *

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