This article was downloaded by: ["Queen's University Libraries, Kingston"]

On: 07 March 2015, At: 16:29

Publisher: Routledge
Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered
office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK

Accounting Education: an international

journal
Publication details, including instructions for authors and
subscription information:
http://www.tandfonline.com/loi/raed20

Integrating artificial intelligence into

the accounting curriculum
a
Amelia A. Baldwin-Morgan
a
College of Business, Eastern Michigan University
Published online: 28 Jul 2006.

To cite this article: Amelia A. Baldwin-Morgan (1995) Integrating artificial intelligence into
the accounting curriculum, Accounting Education: an international journal, 4:3, 217-229, DOI:
10.1080/09639289500000026

To link to this article: http://dx.doi.org/10.1080/09639289500000026

PLEASE SCROLL DOWN FOR ARTICLE

Taylor & Francis makes every effort to ensure the accuracy of all the information (the
“Content”) contained in the publications on our platform. However, Taylor & Francis,
our agents, and our licensors make no representations or warranties whatsoever as to
the accuracy, completeness, or suitability for any purpose of the Content. Any opinions
and views expressed in this publication are the opinions and views of the authors,
and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content
should not be relied upon and should be independently verified with primary sources
of information. Taylor and Francis shall not be liable for any losses, actions, claims,
proceedings, demands, costs, expenses, damages, and other liabilities whatsoever
or howsoever caused arising directly or indirectly in connection with, in relation to or
arising out of the use of the Content.

This article may be used for research, teaching, and private study purposes. Any
substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing,
systematic supply, or distribution in any form to anyone is expressly forbidden. Terms &
Conditions of access and use can be found at http://www.tandfonline.com/page/terms-
and-conditions
 Accounting Education 4 (3), 217-229 (1995)

Integrating artificial intelligence into the accounting

curriculum
A M E L I A A. B A L D W I N - M O R G A N *
College of Business, Eastern Michigan University

Received August 1994,

Revised February 1995, March 1995
Accepted March 1995
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

Abstract

The development and use of artificial intelligence technologies continues to expand in accounting
practice, industry and government. However, the exposure of accounting students to artificial
intelligence remains almost non-existent. Accounting faculty should move towards integrating
artificial intelligence topics into the curriculum so that students can begin learning about artificial
intelligence before they encounter it in the workplace. Artificial intelligence techniques give computer
systems human-like abilities to reason and learn. For accounting, the most promising types of
artificial intelligence are expert systems and neural networks. Artificial intelligence is used in
auditing, financial and management accounting, taxation and government. The integration of
artificial intelligence into the accounting curriculum befits the move for microcomputer integration
and calls for the innovative use of technology in the accounting courses. Suggestions from the
literature include using supplemental readings and requiring students to use and/or build simple
expert systems. The motivations and examples discussed here should provide the impetus for other
instructors to integrate coverage of artificial intelligence topics into their accounting courses.
Keywords: accounting education, IT integration, artificial intelligence, expert systems.

Introduction
Artscial intelligence is one of those seductive terms that brings to mind visions of a future
world where everyone has a life of leisure and only artificial lifeforms carry out the
drudgery of day-to-day labour. Well, that time is not yet upon us. However, artificial
intelligence is becoming a more common technology, with commercial applications in the
accounting domain. As this technology gains widespread use, accounting students must be
exposed to its features and potential before reaching the workplace.
Actually affecting student knowledge is usually the last phase in a seemingly straight-
forward process of curriculum change. Four steps can be followed to integrate artificial
intelligence into the curriculum (Figure 1). First, faculty must recognize the need for
artificial intelligence integration, that is, the need for future accountants to become
familiar with artificial intelligence. Second, faculty must become informed about artificial
intelligence. One of the biggest barriers to change is the lack of accounting educator
knowledge about artificial intelligence. Third, knowledgeable professors and departments
can then intelligently implement appropriate changes to the accounting curriculum.

* Address for correspondence: Amelia Baldwin-Morgan, Department of Accounting, 406 Owen, College of
Business, Eastern Michigan University, Ypsilanti, M1 48197, USA. Email: acc~abaldwin@emuvax.emich.edu
0963-9284 0 1995 Chapman & Hall
 A. A. Baldwin-Morgan

Recognize
need for AI

\
.-U
- --
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

knowledge 1 )

Fig. 1. Steps for integrating artificial intelligence into the accounting curriculum.

Fourth, the enlightened professors and the changes in the curriculum will affect student
knowledge about artificial intelligence.
The purpose of this paper is to address the three steps needed to integrate artificial
intelligence topics into the accounting curriculum and to assist faculty in this process. The
paper proceeds as follows. First, artificial intelligence is defined along with the principle
areas that affect accounting practice. This basic knowledge should be a part of the
repertoire of each accounting educator. Second, examples of the use of artificial intelli-
gence in accounting and industry are given. These not only illustrate the variety of artificial
intelligence applications in accounting, but also could provide interesting material for
beginning a class discussion. Third, motivators for integrating artificial intelligence into
the accounting curriculum are identified. Fourth, a plethora of examples and suggestions
 Integrating artfical intelligence into the accounting curriculum 219

for integrating artificial intelligence into the curriculum are described. Some final observa-
tions conclude the discussion.

Artificial intelligence
The American Institute of Certified Public Accountants (AICPA) provides this practical
1 definition of artificial intelligence:
a set of techniques whose processes give computers the human-like abilities to see,
hear, speak, reason with imprecise or incomplete information, and learn (1987,
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

P 1).
The artificial intelligence abilities of reasoning and learning have the most interesting
potential for accounting applications. Currently, the forms of artificial intelligence most
likely to impact accountants are expert systems and neural networks.

Expert systems
Expert systems are computer systems that imitate the thinking processes of human experts
in order to solve problems in narrow domains (AICPA, 1987). The purpose of developing
expert systems is to have expertise available even when the human expert is not.

Components of expert systems

Most expert systems have four common components, a knowledge base, an inference
engine, a user interface, and an explanation facility. The knowledge base is the component
that contains the expertise or knowledge elicited from the expert(s). The inference engine is
a computer program that uses the knowledge base to solve a problem. Essentially, the
inference engine finds the knowledge bases that are appropriate for solving the problem
and uses them to find a solution (AICPA, 1987).
The user interface refers to the way the expert systems and the human user commu-
nicate. The user interface is used by the user to give facts about the issue in question to the
inference engine. It is also used by the inference engine to communicate the problem
solution to the user. An explanation facility explains to the user why certain information is
requested or how a solution has been reached. An explanation facility will provide the user
with more confidence in the system. It can also help the user gain expertise about the
domain from the expert system (AICPA, 1987).
Expert systems can be grouped according to the nature of their knowledge representa-
tion. Knowledge representation refers to the method used to store facts and relationships.
Knowledge may be represented using rules, frames or cases. Some expert systems are
actually hybrid mixtures of more than one knowledge representation (Harmon and
Sawyer, 1990).

Rule-based expert systems

The majority of accounting expert systems are rule based. That is, the knowledge of the
human expert(s) is recorded in the knowledge base as facts and rules. These rules are often
in the form of IF ... THEN statements (AICPA, 1987). For example, a simple system for
classifying leases as capital or operating leases might have a rule like this:
 A. A. Baldwin-Morgan

RULE :
IF Transfer-of-Ownership=Yes
AND
Lessee~or~Lessor~type=Lessee
THEN Type-of-Lease = CAPITAL-LEASE
Rule-based knowledge representation is the most common and easiest knowledge repre-
sentation scheme to understand. l

Frame-based expert systems i

Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

l
Some expert systems represent knowledge using frames rather than rules. Frames associate l
an object or concept with a set of characteristics (e.g. values, facts, rules, etc.). Each
characteristic is stored in a slot. A frame is the group of slots associated with a specific
object. A frame is somewhat analogous to a record, in database or programming terms
(Harmon and Sawyer, 1990).

Case-based reasoning
Case-based reasoning uses past experiences in the way that humans use experiential
reasoning to solve complex problems. This type of expert system is most appropriate
when little evidence is available or information is incomplete. The case base is made of a
set of cases. Each case contains information about its situation, its solution, the results of
that solution and key attributes. The index library searches the case base and retrieves
cases similar to the problem currently being addressed. Similarity metrics are used to
measure how similar a past case is to the current problem. Learning can occur by adding
new cases and their solutions to the case base (Brown and O'Leary, 1994).
Case-based reasoning is particularly suited for application to accounting principles
derived from prevalent industry practices, auditing, compliance accounting and manage-
ment accounting. Commercial case-based systems have been developed for financial credit
evaluation, bankruptcy prediction, credit evaluation (Mott, 1993), real estate property
appraisal (Gonzalez and Laureano-Ortiz, 1992), bidding for manufactured products, and
fraud detection (Brown, 1994).
l
Neural networks
Neural networks are computer systems and software that are built based on the organiza-
tional principles of the human brain (Duggal and Popovich, 1993). The brain organizes its
neurons to compute much quicker than the fastest digital computers (Kinoshita, 1988).
Although the brain's neurons are actually slower processors, the brain somehow organizes
them to make faster decisions. Neural network developers want to take advantage of that
organizational power of the brain.
Where traditional expert systems are rule based, neural networks are example based.
The knowledge in a neural network is derived from the data not a human expert (Ether-
idge and Brooks, 1994). Neural networks learn by example. Neural networks perceive
patterns by examining large amounts of data about examples. The neural network
classifies new examples based on the patterns recognized in them (Duggal and Popovich,
1993).
The finance industry has created the most neural network systems for business related
applications. Avco Financial Services analyses loan applications with a neural network.
 Integrating artijical intelligence into the accounting curriculum 22 1

Neural networks created by Adaptive Systems assess mortgage loan applications. Nestor
and Wyman's neural network analyses consumer loan applications (Stipp, 1988). Chase
Manhattan Bank uses a neural network to detect credit card fraud (Gulbo, 1990). Nikko
Securities, Frontier Financial and Citicorp improve their securities trading strategies by
using neural networks. Kodak and a number of direct-mail companies also use neural
networks (Etheridge and Brooks, 1994).
Neural networks are appropriate for tasks whose results may be based on examples and
whose rules are not formally organized or even known. Explanation should not be a
requirement of the task if neural networks are appropriately applied. Accounting tasks
that may be suitable for neural network development include audit error identification
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

l
(Duggal and Popovich, 1993), bankruptcy prediction (Etheridge and Brooks, 1994), and
loan and credit evaluation (Duggal and Popovich, 1993). Accounting firms are investigat-
ing neural networks. An audit firm was reported to be developing a neural system for
identifying audit errors (Duggal and Popovich, 1993). KPMG Peat Marwick uses a neural
network to predict bankruptcy (Etheridge and Brooks, 1994).
Neural networks eliminate some of the problems associated with rule-based expert
systems. The expertise in a neural network need not be formally organized. Also, neural
networks are very adaptive, unlike rule-based expert systems. However, neural networks
do have limitations. For example, they do not explain how solutions are achieved; no
decision rules are evident (Duggal and Popovich, 1993).

Applying artijkial intelligence to accounting

Why are artificial intelligence technologies appropriate for accounting related tasks? Many
accounting tasks require expertise to form opinions about complex information, both
numeric and symbolic (Borthick, 1987). McCarthy and Outslay (1989) suggest that for
artificial intelligence techniques to be appropriate 'the problem-solving process should be
primarily heuristic as opposed to algorithmic'. In addition, 'The knowledge represented
should be primarily symbolic as opposed to numeric' (p. 15).
Many accounting tasks also have the added attraction of having a high cost of wrong
decisions and a need for preserving expertise, which are suggested by Hu (1987) as
prerequisites for expert systems development. Accounting tasks that have been suggested
as suitable for expert systems development include external auditing (Etheridge and
Brooks, 1994), internal auditing (Sriram, 1992), governmental accounting and auditing
(Brown and McDuffie, 1993), and tax accrual and planning (Fortin, 1994; McDuffie et al.,
1994).

Art ficial intelligence in accounting practice

Artificial intelligence is used in many areas of accounting. Currently, the most common
use of artificial intelligence involves rule-based expert systems. However, some neural
networks and non-rule based expert systems are also in use.
One of the biggest areas of expert systems development is in external auditing. Expert
systems are developed and used by public firms to plan audits (Baldwin-Morgan, 1994),
assess risk (Graham et al., 1990), evaluate loan loss reserves (Willingham and Ribar, 1988),
determine disclosure compliance, recommend audit sample sizes, predict bank failures,
account for foreign currency transactions, apply SEC regulations (Brown, 1991), and
evaluate internal control (Brown and Murphy, 1990).
Taxation is another domain with much expert systems development. In the tax arena,
 222 A. A. Baldwin-Morgan

expert systems are used for corporate, international and individual tax planning, tax-
exempt status maintenance, compliance checking, uniform capitalization, tax issues con-
cerning preferred shares, and resident alien status questions (Brown, 1991).
On the financial front, accounting firms use expert systems to provide personal financial
planning to individual clients (Phillips et al., 1990). Shearson Lehman's neural network
system predicts stock and bond performance (Schwartz and Treece, 1992). The State Bank
of New South Wales, Australia, uses an expert system to assess loan applications (Zawa, 1
1994). ~
Expert systems are also used in management and management accounting. Some
companies use expert systems to provide personal financial planning assistance to their
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

employees (Phillips et al., 1990). American Express uses an expert system to authorize
customer purchases. IBM's expert system assists its field service representatives in pricing
bids. Texas Instruments has an expert system that helps employees with capital budget
requests (Leonard-Barton and Sviokla, 1988). Another neural network identifies Spiegel's
most likely buyers (Schwartz and Treece, 1992).
Artificial intelligence is also used by governmental entities. A California county govern-
ment uses an expert system to determine eligibility of applicants for welfare benefits. A
similar system was developed for the state of Pennsylvania (Schwartz and Treece, 1992).
Applications of artificial intelligence to accounting-related tasks are developed by a wide
variety of organizations. The systems just mentioned were developed by public accounting
and consulting firms, federal and local governments, commercial developers, and corpo-
rate developers in a variety of industries.

Artificial intelligence integration

The motivations for integrating artificial intelligence into accounting education are derived
from influences both outside and inside of the academic world.

External motivators
The most important reason for including artificial intelligence in accounting education is
to better prepare the students for the professional world. According to Bandy (1990), that
is the purpose of accounting education, not to teach accounting to students, but rather to
teach students to become accountants. Hatherly and Fraser (1991) concur. They assert
that because expert systems are being used in the profession, accounting students should
become familiar with these tools.

Internal motivators
The integration of microcomputers in the accounting curriculum is required by the
American Association of Collegiate Schools of Business (AACSB), the principal accred-
iting body of business schools in the United States. Currently, about 25% of schools of
business have been accredited by the AACSB. Less than 15% of accounting programmes
have obtained separate accreditation from the AACSB. The use of expert systems in
accounting education is an innovative method for meeting the AACSB's microcomputer
integration requirement (1985).
Another inside motivator that is specific to accounting is the Accounting Education
Change Commission (AECC). The AECC, in its first position statement, encouraged the
creative use of technology. Further, the AECC asserts that accounting students should
learn by doing (1990). Using and building simple expert systems in accounting courses
 Integrating artijical intelligence into the accounting curriculum 223

meets both of those requirements.

The academic accounting literature is replete with support and suggestions for the
integration of microcomputers into the accounting literature (Sangster, 1992; King and
Whittaker, 1991; Raval 1989; Cerullo and Klein, 1988; Coppage and Baxendale, 1988;
Krause and Taylor, 1988; Bean and Medewitz, 1987; Borthick and Clark, 1987; Armitage
and Boritz, 1986; Helmi, 1986; Cerullo et al., 1984). Other articles specifically call for the
coverage of expert systems in accounting education (Sangster, 1991; Bagranoff, 1990;
Black and Costandi, 1988; French and Flesher, 1987; Michaelsen and Messier, 1987).
Research suggests that the use of expert systems in accounting education has beneficial
impacts on students (King and McAulay, 1991; Dorr et al., 1988). In addition, the
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

appropriateness of expert systems use for the training of accountants has been supported
by both practitioners and academicians (Black et al., 1990; Jancura, 1990; Englard et al.,
1989; Jancura and Overbey, 1988; Gal and Steinbart, 1987; McKee, 1986; Elliot and
Kielich, 1985).

Integration suggestions and examples

One reason some instructors have been slow to integrate artificial intelligence and expert
systems topics into their courses may be that they feel unsure where to begin. This section
provides a number of general suggestions for integration along with recommendations for
expert systems projects in particular courses.

General suggestions
White (1995) suggests seven ways to cover expert systems in class. The least difficult
method in terms of time and resources is the textbook approach. Most accounting
information systems textbooks have some discussion of artificial intelligence. Often, this
is a mention of expert systems in the context of a chapter or segment on decision support
systems. Some instructors may desire to augment the textbook coverage with supplemental
readings such as Brown and O'Leary (1994), which has been distributed to members of the
Artificial Intelligence/Expert Systems special interest section of the American Accounting
Association expressly for use by faculty and students, or journal articles such as Brown
and Murphy (1990) or Brown (1991).
With a bit more effort, accounting teachers may require a project using a sample expert
system. Those more industrious could ask the students to build a simple expert system
using a simple expert shell. Others may want students to build a complex expert system.
Only the most ambitious professors will have accounting students learn an artificial
intelligence program language or take a course in artificial intelligence programming
(White, 1995).
While White (1995) was envisaging coverage of artificial intelligence and expert systems
in the accounting information systems course, coverage in other courses has also been
suggested. For example, instructors in a number of accounting courses may use supple-
mental readings that are geared specifically to their area of interest. Most of the reading
suggestions listed below were published in practitioner journals or journals meant for both
a practitioner and an academic audience. Most are not lengthy, and many include a brief
section defining and describing expert systems technology. Those listed below represent a
selection of the more recent articles that may be appropriate for student consumption.
Tax instructors may use McDuffie et al. (1994), Schreiber (1992) and Black et al. (1990).
I Auditing students can read about expert systems use in internal and external auditing in
 224 A. A. Baldwin-Morgan

Sriram (1992), Brown and Phillips (1991) and Brown and Murphy (1990). Management
accounting instructors may assign readings by Brown and Phillips (1990) and Brown and
Phillips (1994). Brown and McDuffie (1993) may be used in a governmental accounting
course. Several articles may be particularly appropriate for use in MBA-level courses, e.g.
Schwartz (1992), Yamasaki and Manoochehri (1991), and Leonard-Barton and Sviokla
(1988).
Examples of use in accounting courses
For instructors who want to go further than using supplemental readings, several choices
for integrating artificial intelligence and expert systems into their courses have been
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

mentioned. The two most common involve having students use an expert system and
having students build an expert system. Use of an expert system by students will give them
a basic understanding of the technology and of the expert system's task. Building a simple
expert system carries the added bonus of providing a deeper understanding of both the
technology, the task requirements, and problem-solving skills. Students who build an
expert system also gain some understanding of the process of system development.
Expert systems have been introduced in almost every possible accounting course. Boer
and Livnat (1990) suggest that teaching accounting topics with an expert system is
appropriate when the accounting issue has a complex set of rules which can be divided
into segments and have an ordering in the decision process. Further, these routines must
need practice to be mastered fully. Examples of how instructors have used the technology
and additional methods to try are given in this section for specific portions of the
accounting curriculum.

Financial accounting
Boer and Livnat (1990) demonstrated the use of an expert system project to teach
intermediate accounting students how to classify capital or operating leases. One class
used the expert system (built with Exsys) and another class used a traditional textbook
approach. The expert system users made fewer errors. Boer and Livnat (1990) concluded
that expert systems tools can be an effective teaching aid.
Sangster and Wilson (1991a,b) described an experiment that involved students con-
structing and using an expert system applied to three different UK Statements of Standard
Accounting Practice (depreciation, research and development, and investment property).
Their conclusions definitely support the use of expert systems by students. First, having
students develop and use their own expert system tools required less preparation time than
non-expert-system computer-aided learning. Second, the development and use of the
expert systems accelerated student comprehension. Third, the expert systems project
required students to exercise their problem solving skills. Fourth, student exposure to
expert systems helped them appreciate the potential usefulness of expert systems in the real
world.
McDuffie (1990) constructed and validated an expert system (using VP-Expert) for
accounting for business combinations. This system applies the criteria identified in APB
Opinion No. 16 to the purchase or pooling decision (McDuffie et al., 1993). The developer
has shared his prototype expert system with others interested in expert systems in
accounting (Smith et al., 1991).
Booker and Kick (1987) developed an expert system for use in intermediate accounting
using Expert Ease. Their article describes the development process in detail. The system
 Integrating artijical intelligence into the accounting curriculum 225

applies Accounting Principles Board Opinion No. 21, Interest on Receivables and Payables.
Many other expert system developments are possible in financial accounting. Hatherly
and Fraser (1988) discussed the development of an expert system for classifying inter-
company investments. Boer and Livnat (1990) suggest other financial accounting topics
that may be appropriate for expert systems use, such as earnings per share, accounting for
pensions, foreign currency translation, business combinations and accounting for deferred
compensation.

Management and cost accounting

King and McAulay (1991) developed an expert system to support the learning process in
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

management accounting. The knowledge area encompassed in the system was standard
costing.

Taxation
French and Flesher (1987) suggest that tax educators must prepare for the impact of expert
systems on tax education. However, few have expert systems been reported in use in tax
courses.
Bouwman and Knox-Quinn (1995) had masters students in taxation build simple expert
systems. The students improved not only their knowledge about the tax subject, but also
their problem solving skills. Hye and Nar (1993) described the development and testing of
an expert system for teaching students in Singapore how to segregate tax deductible
expenditure items from non-deductible items.

Accounting information systems

Black and Costandi (1988) suggest that expert systems in accounting should be a topic
covered in the accounting information systems class. As previously discussed, White
(1995) mentions seven methods for integrating artificial intelligence into the accounting
information systems course. This course is the most popular place to integrate expert
systems. The following paragraphs discussed reported uses of expert system and expert
system-like technology in accounting information systems courses.
Cerullo and Greer (1992) had students complete a demonstration of a non-expert
decision support system shell called LIGHTYEAR. The students then used the shell to
solve two fictional problems: choosing companies with which to interview for potential
employment and selecting the most suitable personal computer system for automating
departmental data processing.
Peek (1991) discussed a student project that required students to design an expert system
(using VP-Expert) to help a hypothetical consulting client solve product pricing problems.
This project gave students realistic experience in solving system development problems.
Dorr et al. (1988) developed an expert system for the evaluation of internal control over
payroll processing using the lstClass expert system shell. The system was used in the
accounting information systems course to teach students about internal control and to
expose them to expert systems technology.
Eining and Dorr (1991) constructed an expert system for internal control evaluation.
This system was also utilized by students in an accounting information systems course.
 226 A. A. Baldwin- Morgan

Auditing
Auditing is one area that has seen much expert systems development in public accounting,
but no corresponding coverage in auditing courses. Two of the just described systems,
while used in an accounting information systems course, covered an auditing-related task,
the evaluation of internal control. These give some idea of the potential for expert systems
use in auditing courses. Another method for introducing such systems to students is to
have a demonstration of one by a representative of a public accounting firm. Whether
firms are willing to provide this service or to allow semi-public demonstrations of their
technology is not known.
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

Conclusions
The increasing use of expert systems for accounting tasks in accounting practice, industry
and government is a signal that future accountants should begin learning about artificial
intelligence during their undergraduate studies. This paper presented information intended
to assist accounting educators in becoming knowledgeable about artificial intelligence, and
in understanding the need for incorporating such knowledge into the curriculum. In
addition, examples and suggestions from the literature were provided to assist in curricu-
lum change.
Changing the curriculum is never an easy task. Witness the ongoing effort to integrate
microcomputers into the curriculum. Even in the 1990s, some accounting instructors
remain unwilling to change (King and Whittaker, 1991). Like microcomputers, integration
of artificial intelligence topics into the accounting curriculum will not happen quickly.
However, one method for combating lack of knowledge and unwillingness to change is the
dissemination of useful information and the existence of successful exemplars. Hopefully,
the information contained herein will help to push change in the curriculum one more step
forward.

Acknowledgements
The author is grateful for the helpful comments of Gary McCombs, Mohsen Sharifi, and
Skip White, the anonymous reviewers and the guest editor.

References
Accounting Education Change Commission (1990) Objectives of education for accountants: position
statement number one, Issues in Accounting Education, 5 (2) Fall, 307-12.
American Assembly of Collegiate Schools of Business (1985) Accreditation Council Policies,
Procedures and Standards.
American Institute of Certified Public Accountants (1987) An introduction to artificial intelligence
and expert systems. A Management Advisory Services Special Report, (AICPA: New York).
Armitage, H.M. and Boritz, J.E. (1986) Integrating computers into the accounting curriculum, Issues
in Accounting Education, 1 (l), 86101.
Bagranoff, N.A. (1990) Using the computer in the accounting information systems course, Journal of
Accounting and Computers, 6 , Fall, 43-54.
Baldwin-Morgan, A.A. (1994) The impact of expert systems on auditing firms: evidence from a case
 Integrating artzjkal intelligence into the accounting curriculum 227

study, International Journal of Applied Expert Systems, 2 (3), pp. 159-74.

Bandy, D. (1990) Accounting education at the crossroads, CPA Journal, 60 (8) 12-13, 82.
Bean, V.L. and Medewitz, J.N. (1987) Computer education: a survey of accounting graduates,
Journal of Accounting Education, 5(2), 243-58.
Black, R.L., Carroll, T.W. and Rex, S.K. (1990) Expert systems: a new tool to enhance a tax
practice, The Tax Advisor, January, 3-17.
Black, T.G. and Costandi, W. (1988) The content of the introductory AIS course and its position in
the accounting curriculum, Journal of Accounting and Computers, 4, Fall, 1 6 31.
Boer, G.B. and Livnat, J. (1990) Using expert systems to teach complex accounting issues, Issues in
Accounting Education, 5 (l), Spring, 108-19.
Booker, J.A. and Kick, R.C., Jr. (1987) Bringing expert systems technology to the accounting
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

classroom, Journal of Accounting and Computers, 3, Fall, 47-57.

I Borthick, A.F. (1987) Artificial intelligence in auditing: assumptions and preliminary development,
Advances in Accounting, 5, 179-204.
Borthick, A.F. and Clark, R.L. (1987) Research on computing in accounting education:
opportunities and impediments, Issues in Accounting Education, 2 (2), Fall, 173-91.
Bouwman, M. and Knox-Quinn, C. (1995) Student knowledge engineering in accounting: a case
study in learning. Accounting Education (This issue).
Brown, C.E. (1994) Case-based reasoning and the accounting domain. In Moving Toward Expert
Systems Globally in the 21st Century (edited by J. Liebowitz) Cognizant Communication
Corporation: New York.
Brown, C.E. (1991) Expert systems in public accounting: current practice and future directions,
Expert Systems with Applications, 3 (l), 3-18.
Brown, C. and Murphy, D. (1990) The use of auditing expert systems in public accounting, Journal
of Information Systems, 5 (l), Fall, 63-72.
Brown, C. and O'Leary, D.E. (1994) Introduction to Artificial Intelligence and Expert Systems.
Instructional materials. Artifical Intelligence/Expert Systems Section of the American
Accounting Association, Corvallis, USA.
Brown, C. and Phillips, M.E. (1994) Expert Systems for Management Accounting Tasks.
Forthcoming Institute of Management Accountants Monograph.
Brown, C. and Phillips, M.E. (1991) Expert systems for internal auditing, Internal Auditor, 48 (4),
23-8.
Brown, C. and Phillips, M.E. (1990) Expert systems for management accountants, Management
Accounting, 71 (7), January, 18-23.
Brown, K.W. and McDuffie, R.S. (1993) Expert systems are needed in governmental accounting and
auditing, Governmental Accountants Journal, 42 (3), Fall, 3747.
Cerullo, M,, Garsombke, P. and Klein, L. (1984) Using microcomputers in the accounting
curriculum, Information Systems and Management Consulting, Fall, 22- 25.
Cerullo, M. and Greer, O.L. (1992) Using decision support software in the basic accounting
information systems course, Journal of Accounting and Computers, 8, Fall, 2747.
Cerullo, M. and Klein, L. (1988) Longitudinal survey of microcomputer applications in accounting
curricula, Interface; The Computer Education Quarterly, Spring, 2-7.
Coppage, R.E. and Baxendale, S.J. (1988) Developing a master plan for integrating the computer
into the accounting curriculum, Journal of Accounting and Computers, 4, 43-59.
Dorr, P,, Eining, M. and Groff, J.E. (1988) Developing an expert systems decision aid for classroom
use, Issues in Accounting Education, 3 (l), Spring, 27- 41.
Duggal, S.M. and Popovich, P.R. (1993) Practical applications of neural networks in business,
Journal of Computer Information Systems, 33 (2), Winter, 8-13.
Eining, M. and Dorr, P. (1991) The impact of expert systems usage on experiential learning in an
auditing setting, Journal of Information Systems, 5 (2), Spring, 1-16.
i Elliott, R.K. and Kielich, J.A. (1985) Expert systems for accountants, Journal of Accountancy, 160
 228 A. A. Baldwin-Morgan

(3), September, 1985.

Englard, B., Kiss, M. and Schwartz, H. (1989) Expert systems in accounting, CPA Journal, April,
58-64.
Etheridge, H.L. and Brooks, R.C. (1994) Neural networks: a new technology, The CPA Journal, 64
(3), March, 3639, 52-55.
Foltin, L.C. (1994) The future of expert systems. National Public Accountant, 39 (7), July, 28-31.
French, G.R. and Flesher, T.K. (1987) Implications of expert systems for tax practice and education,
Journal of Accounting and Computers, 3, Fall, 3244.
Gal, G. and Steinbart, P. (1987) Artificial intelligence and research in accounting information
systems: opportunities and issues, Journal of Information Systems, 2 (l), Fall, 54-62.
Gonzalez, A.J. and Laureano-Ortiz, R. (1992) A case-based reasoning approach to real estate
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

property appraisal, Expert Systems with Applications, 4 (2) 229- 46.

Graham, L.E., Damens, J. and Van Ness, G. (1990) Developing risk advisor: an expert system for
risk identification. Paper presented at the University of Southern California Audit Judgment
Symposium, Los Angeles, CA (February, 1990).
Gulbo, K. (1990) Neural nets versus card fraud, American Banker, February, 3.
Harmon, P. and Sawyer, B. (1990) Creating Expert Systems for Business and Industry, New York:
John Wiley and Sons.
Hatherly, D. and Fraser, R. (1988) Systems that breed accountants, Accountancy, 102 (1 134),
February, 135-7.
Helmi, M.A. (1986) Integrating the microcomputer into accounting education - approaches and
pitfalls, Issues in Accounting Education, 1 (l), 102-1 1.
Hye, L.M. and Nar, E.S.Y. (1993) An expert system for the teaching of income tax in the accounting
curriculum, Accounting Education, 2 (l), 43-52.
Hu, S.D. (1987) Expert Systems for Software Engineers and Managers, New York: Chapman and
Hall.
Jancura, E.G. (1990) Expert systems, an important new technology for accountants, The Woman
CPA, 52 (2), Spring, 25-8.
Jancura, E.G. and Overbey, J.T. (1988) Expert systems in training, The Woman CPA, 50 (l),
January, 1619.
King, M. and McAulay, L. (1991) A standard costing knowledge base: building and using an expert
system in management accounting education, Issues in Accounting Education, 6 (l), Spring 97-
111.
King, R. and Whittaker, J. (1991) Integrating computers into accounting courses, Account, 3 (2), 27-
35.
Kinoshita, J. (1988) Neural networks at work, Scientific American, 259, November, 134-36.
Krause, M.J. and Taylor, R.L. (1988) Integrating the microcomputer into the accounting
curriculum: a plan, some observations, and tentative conclusions, Journal of Accounting and
Computers, 4, 3341.
Leonard-Barton, D. and Sviokla, J.J. (1988) Putting expert systems to work, Harvard Business
Review, 66 (2), March-April, 91-98.
McCarthy, W.E. and Outslay, E. (1989) An analysis of the applicability of artificial intelligence
techniques to problem-solving in taxation domains, Accounting Horizons, 3 (2), June, 14-27.
McDuffie, R.S. (1990) Construction and validation of an expert system prototype to determine the
accounting treatment for business combinations. Dissertation, Louisiana Tech University.
McDuffie, R.S., Flory, S.M. and Humphreys, N.J. (1993) Using expert systems to expand your
accounting practice, Massachusetts CPA Review, 67 (3), Summer, 11-13.
McDuffie, R.S., Oden, D. and Porter, E.P. (1994) Tax expert systems and future development, The
CPA Journal, 64 (l), January, 73-75.
McKee, T.E. (1988) Does your practice have a place for an expert system? CPA Journal, 58, January,
114-18.
 Integrating artijical intelligence into the accounting curriculum 229

Michaelsen, R.H. and Messier, W.F., Jr. (1987) Expert systems in taxation, The Journal of the
American Taxation Association, 8 (2), Spring, 7-21.
Mott, S. (1993) Case-based reasoning: market applications and fit with other technologies, Expert
Systems with Applications, 6 (l), 97-104.
Peek, G.S. (1991) Using expert systems projects in the accounting information systems course: the
rational and an example, Journal of Accounting and Computers, 7, Fall, 99-108.
Phillips, M.E., Brown, C.E. and Nielson, N.L. (1990) Personal financial planning with expert
systems: an expanding employee benefit, Management Accounting, 72 (3), 29-33.
Raval, V. (1989) A curriculum-wide approach to integration of computer in accounting education,
Journal of Information Systems, 3 (2), Spring, 132-44.
Sangster, A (1991) Expert systems in the accounting curriculum: a textbook review, British
Downloaded by ["Queen's University Libraries, Kingston"] at 16:29 07 March 2015

Accounting Review, 23 (2), 171.

Sangster, A. and Wilson, R.A. (1991a) Knowledge-based learning within the accounting curriculum,
British Accounting Review, 23 (3), 243-61.
Sangster, A. and Wilson, R.A. (1991b) Knowledge-based learning, Expert Systems for Information
Management, 4 ( l ) , 49-63.
Sangster, A. (1992) Computer-based instruction in accounting education, Accounting Education, 1
(l), 13-32.
Schreiber, R. (1992) IRS artificial intelligence projects (Close Encounters of an AI Kind), The Tax
Advisor, October, 690-2.
Schwartz, E.I. and Treece, J.B. (1992) Smart programs go to work, Business Week, March 2,97-100,
105.
Sriram, R.S. (1992) Emerging technologies: implications for internal auditors, Internal Auditing, 7
(4), Spring, 78-83.
Stipp, D. (1988) Computer researchers find neural networks help mimic the brain, The Wall Street
Journal, September 29, 1, 20.
White, C.E., Jr. (1995) An analysis of the need for ES and AI in accounting education. Accounting
Education (This issue).
Willingham, J. and Ribar, G.S. (1988) Development of an expert audit system for loan loss
evaluation. In Auditor Productivity in the Year 2000, (edited by A. Bailey) Reston, VA: Arthur
Young, pp. 171-84.
Yamasaki, L. and Manoochehri, G.H. (1991) The commercial applications of expert systems, S A M
Advanced Management Journal, 56, Winter, 42-5.
Zawa, S. (1994) Case study of a knowledge based system for consumer lending. In Moving Toward
Expert Systems Globally in the 21st Century, edited by J . Liebowitz (New York: Cognizant
Communications).