Abstract The purpose of this study is to develop a generalized simulation model for evaluating the reliability of different accounting systems. The model builds upon a set of basic accounting activities that result in the generation and correction of accounting errors and which are represented by general simulation program modules. The modules can be organized with little modification to represent large and diverse systems. The revenue cycle is used to illustrate how the simulation model can be employed to evaluate the absolute and relative error performance of individual systems.
W. Robert Knechel (Fri,) studied this question.