Information System Control Selection Using Spreadsheet Optimization

18 Pages Posted: 23 Jun 2006

See all articles by Joseph Walls

Joseph Walls

University of Michigan, Stephen M. Ross School of Business

Date Written: July 2004

Abstract

Today even the smallest organization depends heavily on information systems (IS) to support achievement of its objectives. Thus there exists a need for tools and techniques for choosing controls, or IS components that assure system dependability. Several researchers have developed quantitative models of controls. One such model for choosing controls incorporated the trade-off between the cost of establishing controls and the cost of not having them. The model was a refinement of the control evaluation table method used by auditors, enhanced with a probability model of control effectiveness, and formulated as a 0-1 nonlinear optimization problem. This paper presents a brief review of the model formulation and then goes on to provide a spreadsheet model solution.

Keywords: information system control,spreadsheet optimization,control evaluation table,quantitative models of controls

JEL Classification: C00

Suggested Citation

Walls, Joseph, Information System Control Selection Using Spreadsheet Optimization (July 2004). Ross School of Business Paper No. 967, Available at SSRN: https://ssrn.com/abstract=911270 or http://dx.doi.org/10.2139/ssrn.911270

Joseph Walls (Contact Author)

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

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