Apply Process Mining to Evaluate Internal Control Effectiveness Automatically
Process mining can add value and improve the performance of auditing; specifically, it could improve the effectiveness of internal control (Yang and Hwang 2006; Kopp and Donnell 2005; Jans et al. 2009, 2011, 2013, 2014). Therefore, this project aims at applying process mining to evaluate internal control effectiveness automatically. The details of this research includes: (1) Determine the controls required for the business process including the rules for acceptable and unacceptable variants (e.g., the variant is unacceptable if the purchase order has been released without sign). (2) Highlight the weakness of internal control by automatically extracting the unacceptable variants. (3) Conduct three additional analysis: segregation of duty analysis, timestamp examination, and personnel analysis - multiple violation.