A critique of knowledge-based systems in auditing: the systemic encroachment of technical consciousness

It is important to reflect critically on the effect of knowledge-based computer systems on human expertise and potential in order to formulate better an appropriate role for such systems in the audit environment. In this paper we initiate a critique of knowledge-based systems in auditing by considering their effect on field auditors' work and their work place. Three perspectives are taken: technical-empirical, historical-hermeneutic and critical. We review current and pending knowledge-based systems which have audit applications and consider their potential effects in, and on, the professional audit workplace. Following the work of Winograd and Flores [Understanding, Computers and Cognition (Reading, Massachusetts: Addison-Wesley, 1986], limitations inherent in the prevailing rationalistic orientation to systems design are discussed. While these systems may be able to reduce costs and increase audit quality in the short term, there is a danger that necessary human development and expertise will be sacrificed if high-level decisions and judgements routinely come within the domain of such systems. Habermas' [Legitimation Crisis, T. McCarthy (trans) (Boston: Beacon Press 1975) and The Theory of Communicative Action, Vols 1 and 2, T. McCarthy (trans) (Boston: Beacon Press 1984)] framework for communicative action is employed to explore both the liberating and oppressive effects of knowledge-based systems on field auditors. We contend that, analogous to other technological applications in the work place, as issues of consequence are pre-empted by knowledge-based systems the potential for enlightened, and enlightening, debate and discussion is reduced. In this environment, possibilities for development and transformation are diminished.

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