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Expert systems in context
BOOK
REVIEWS
93
(Belkaoui partially admits this in the conclusion to this chapter). The international dimension is surprisingly not particularly stressed in many chapters, with just a passing mention to cross country developments-a good example in the book is the chapter on cash flow accounting. He manages to pack some rather unusual wanderings into his final chapter on accounting for developing countries but this also contains some useful information. In summary, I think Belkaoui’s work on international accounting is among his more interesting and the book was a better read than I had hoped. I think that this is the type of book that ‘researchers in international accounting’ who arc searching for a research project should have a look at more than anyone else, because they are bound to find it stimulating. JAMES HASLAM London School oj‘Economicr
1~. Dixon
& G. Rawlings
INTRODUCTION
CIMA
(London,
TO DATABASE
SYSTEMS
1988). 28 pp. A5.95 (pbk)
G. R. Kaye INTRODUCTION
CIMA
(London,
TO FINANCIAL
MODELLING
SYSTEMS
1988). 48 pp. A5.95 (pbk)
T. J. Bentley &J. Sharratt STRATEGIC CONTROL
CIMA
(London,
R. Dixon,
OF INFORMATION
TECHNOLOGY
1988). 28 pp. A5.95 (pbk)
K. Hood & S. Priestnall
EXPERT SYSTEMS IN CONTEXT
CIMA
(London,
1988). 52 pp. A5.95 (pbk)
These are the first four booklets in a series aimed at keeping management accountants informed about current developments in information technology (IT) and their practical implications. Each booklet is intended to provide an easy-to-read introduction to its subject area which will serve as a sound basis for more detailed study or practical application. All four were published in 1988. As a result, there are many instances when the material is already out of date. This can be put down in part to the rapidly changing subject areas, but in truth it is more often due to manuscripts having been prepared in 1987 and, in one particular instance, to material being relevant to an even earlier period. Taking each in turn, Introduction to Database Systems seeks to ‘build upon first principles’ (e.g., what is data; what is an accounts system) ‘to describe the concept of databases and their advantages to the business user’. A simple model is used to explore further the theory of the relational database, and the logic behind the creation of a central database is clearly given. Through a well-presented cxplanation of the differences between hierarchy, network, and relational models the reader is made aware that all three arc indeed database models. Finally, the
94
BOOK
REVIEWS
characteristics of databases are presented in an unambiguous and easy-to-follow manner. This booklet is an excellent introduction to the concept of the database. It should be compulsory reading for all accountants who wish to be able to communicate with, and understand better, the comments of computing and IT specialists on the subject of databases. I also liked the second booklet, Introduction to Financial A4odelling Systems. It is easy to read and presents a useful introduction to the concept of systems modelling, so that no reader could fail to be alerted to the possible benefits it can bring. One of the greatest barriers to achieving efficient financial modelling is the lack of empathy towards the builder’s needs shown by the financial managers who initiate the model construction process. This booklet should help to overcome this problem, and I would recommend it as compulsory reading for anyone who either initiates requests for, supplies the data to, or uses the output of, a financial model. I would also recommend it as an introductory text for anyone becoming involved in developing financial models. I do have one small reservation: one of the most important points to remember when writing a financial model is the need for a chronologically accurate chain of calculation. This point is seriously understated (p. 22) and deserves far more than the rather cryptic sentence it is given. That, and its obvious vintage apart, this is another very good booklet which certainly achieves the aims of the series and is very good value for money. Strategic Control of Information Technology is aimed primarily at business managers. It considers at a strategic level the issues concerning IT, its application, and the way it should be utilized. The business environment in relation to IT is described and analysed and the message clearly presented is that in order to work effectively, IT implementation must be compatible with the business and decision makers concerned, based on information needs, and must be flexible and capable of adjustment. The booklet concludes with a consideration of the future and how to approach it in a way that ensures profitable exploitation of the technology available. It might appear from this description of its content that the booklet would be useful for its intended audience. Unfortunately, this is far from the case. The foreword indicated that it forms the core material of a one-day seminar the authors presented. That is how it reads: concepts are repeated and re-introduced from slightly different angles throughout and the end result is an example of badly implemented IT strategy-the wrong vehicle has been used to convey the information. Having said that, the message does get through and I believe that anyone who reads this booklet will be enlightened to some extent. Now I come to the black sheep of the family, Expert Systems in Context. It starts off well enough with the standard description of the development of Artificial Intelligence and the birth of expert systems. The usual examples (DENDRAL, MYCIN, and PROSPECTOR) are given along with reference to a self-modifying expert system (EURISKO) and the concept of ‘fuzzy’ logic. All the other standard material is then covered: the components of an expert system; ‘current’ (apparently 1986/87) state-of-the-art in relation to the longer-term potential of expert systems; examples of expert systems applications; the tools available for constructing expert systems.
BOOK
95
REVIEWS
However, the early promise is never fulfilled and towards the end the booklet lurches from one problem to another. Chapter 6, dealing with accountancy applications, is excessively out of date: how can a booklet of this type fail to mention CRYSTAL, probably the leading expert system shell in use in the UK today? How can it omit the examples of Ernst & Young’s VATIA system or Cooper & Lybrand’s CLINTE system or their EXPERTEST system? Then there is chapter 7 on the worldwide development of expert systems research. It does not appear to have been proof read: for example, I hardly think ‘450 dollars seed money’ would have been sufficient to fuel the Japanese 5th generation project (p. 44), and where is Fig. 7.1 (p. 45)? Its omission is unforgivable! My overall impression of this booklet is: too brief-verything is tackled at too fast a pace for the non-expert to gain any real insight; assumes knowledge where it should not--e.g., ‘first generation databases’ (p. 45); is seriously out of date in parts; and has been published in a great hurry. To be frank, I would not recommend it to anyone other than as an example of how not to present the subject of expert systems to those who know nothing about them. Indeed, I would recommend to the publishers that they recall it and have it corrected and brought up to date before it is made generally available again: in its present form it can do nothing but harm to their reputation. Overall, these four booklets are a bit of a mixture. Two are excellent, one is good and one is awful. The first three would usefully enhance the knowledge of appropriate personnel, and they would also be useful additions to the training packs of financial management trainees. ALAN SANGSTER University of Aberdeen
S. James & C. Nobes THE
ECONOMICS
OF TAXATION
Philip Allan (Oxford,
1988). 3rd edn. 355 pp. Al2.45
(pbk); A29.50 (hbk)
This popular text, in its third edition, takes into account the replacement of capital transfer tax by inheritance tax and the introduction of the community charge. It applies the revised tax rates for 1988/89 proposed in the 1988 budget. In referring to legislation, however, it keeps to the Income and Corporation Taxes Act of 1970 rather than revising to that of 1988. The separate Workbook which accompanied earlier editions has now disappeared. Some of the Workbook material has been brought into the final chapter of the book in order to provide numerical illustrations. The structure of the book has remained substantially unaltered since its first edition. In effect it is two books; the first dealing with economic theory and principles of taxation and the second dealing with fiscal policy and some applications of tax practice. This is to be contrasted with another popular text, that of Cope (1988) which more successfully integrates economic theory, policy issues and practical aspects of taxation.
REVIEWS
93
(Belkaoui partially admits this in the conclusion to this chapter). The international dimension is surprisingly not particularly stressed in many chapters, with just a passing mention to cross country developments-a good example in the book is the chapter on cash flow accounting. He manages to pack some rather unusual wanderings into his final chapter on accounting for developing countries but this also contains some useful information. In summary, I think Belkaoui’s work on international accounting is among his more interesting and the book was a better read than I had hoped. I think that this is the type of book that ‘researchers in international accounting’ who arc searching for a research project should have a look at more than anyone else, because they are bound to find it stimulating. JAMES HASLAM London School oj‘Economicr
1~. Dixon
& G. Rawlings
INTRODUCTION
CIMA
(London,
TO DATABASE
SYSTEMS
1988). 28 pp. A5.95 (pbk)
G. R. Kaye INTRODUCTION
CIMA
(London,
TO FINANCIAL
MODELLING
SYSTEMS
1988). 48 pp. A5.95 (pbk)
T. J. Bentley &J. Sharratt STRATEGIC CONTROL
CIMA
(London,
R. Dixon,
OF INFORMATION
TECHNOLOGY
1988). 28 pp. A5.95 (pbk)
K. Hood & S. Priestnall
EXPERT SYSTEMS IN CONTEXT
CIMA
(London,
1988). 52 pp. A5.95 (pbk)
These are the first four booklets in a series aimed at keeping management accountants informed about current developments in information technology (IT) and their practical implications. Each booklet is intended to provide an easy-to-read introduction to its subject area which will serve as a sound basis for more detailed study or practical application. All four were published in 1988. As a result, there are many instances when the material is already out of date. This can be put down in part to the rapidly changing subject areas, but in truth it is more often due to manuscripts having been prepared in 1987 and, in one particular instance, to material being relevant to an even earlier period. Taking each in turn, Introduction to Database Systems seeks to ‘build upon first principles’ (e.g., what is data; what is an accounts system) ‘to describe the concept of databases and their advantages to the business user’. A simple model is used to explore further the theory of the relational database, and the logic behind the creation of a central database is clearly given. Through a well-presented cxplanation of the differences between hierarchy, network, and relational models the reader is made aware that all three arc indeed database models. Finally, the
94
BOOK
REVIEWS
characteristics of databases are presented in an unambiguous and easy-to-follow manner. This booklet is an excellent introduction to the concept of the database. It should be compulsory reading for all accountants who wish to be able to communicate with, and understand better, the comments of computing and IT specialists on the subject of databases. I also liked the second booklet, Introduction to Financial A4odelling Systems. It is easy to read and presents a useful introduction to the concept of systems modelling, so that no reader could fail to be alerted to the possible benefits it can bring. One of the greatest barriers to achieving efficient financial modelling is the lack of empathy towards the builder’s needs shown by the financial managers who initiate the model construction process. This booklet should help to overcome this problem, and I would recommend it as compulsory reading for anyone who either initiates requests for, supplies the data to, or uses the output of, a financial model. I would also recommend it as an introductory text for anyone becoming involved in developing financial models. I do have one small reservation: one of the most important points to remember when writing a financial model is the need for a chronologically accurate chain of calculation. This point is seriously understated (p. 22) and deserves far more than the rather cryptic sentence it is given. That, and its obvious vintage apart, this is another very good booklet which certainly achieves the aims of the series and is very good value for money. Strategic Control of Information Technology is aimed primarily at business managers. It considers at a strategic level the issues concerning IT, its application, and the way it should be utilized. The business environment in relation to IT is described and analysed and the message clearly presented is that in order to work effectively, IT implementation must be compatible with the business and decision makers concerned, based on information needs, and must be flexible and capable of adjustment. The booklet concludes with a consideration of the future and how to approach it in a way that ensures profitable exploitation of the technology available. It might appear from this description of its content that the booklet would be useful for its intended audience. Unfortunately, this is far from the case. The foreword indicated that it forms the core material of a one-day seminar the authors presented. That is how it reads: concepts are repeated and re-introduced from slightly different angles throughout and the end result is an example of badly implemented IT strategy-the wrong vehicle has been used to convey the information. Having said that, the message does get through and I believe that anyone who reads this booklet will be enlightened to some extent. Now I come to the black sheep of the family, Expert Systems in Context. It starts off well enough with the standard description of the development of Artificial Intelligence and the birth of expert systems. The usual examples (DENDRAL, MYCIN, and PROSPECTOR) are given along with reference to a self-modifying expert system (EURISKO) and the concept of ‘fuzzy’ logic. All the other standard material is then covered: the components of an expert system; ‘current’ (apparently 1986/87) state-of-the-art in relation to the longer-term potential of expert systems; examples of expert systems applications; the tools available for constructing expert systems.
BOOK
95
REVIEWS
However, the early promise is never fulfilled and towards the end the booklet lurches from one problem to another. Chapter 6, dealing with accountancy applications, is excessively out of date: how can a booklet of this type fail to mention CRYSTAL, probably the leading expert system shell in use in the UK today? How can it omit the examples of Ernst & Young’s VATIA system or Cooper & Lybrand’s CLINTE system or their EXPERTEST system? Then there is chapter 7 on the worldwide development of expert systems research. It does not appear to have been proof read: for example, I hardly think ‘450 dollars seed money’ would have been sufficient to fuel the Japanese 5th generation project (p. 44), and where is Fig. 7.1 (p. 45)? Its omission is unforgivable! My overall impression of this booklet is: too brief-verything is tackled at too fast a pace for the non-expert to gain any real insight; assumes knowledge where it should not--e.g., ‘first generation databases’ (p. 45); is seriously out of date in parts; and has been published in a great hurry. To be frank, I would not recommend it to anyone other than as an example of how not to present the subject of expert systems to those who know nothing about them. Indeed, I would recommend to the publishers that they recall it and have it corrected and brought up to date before it is made generally available again: in its present form it can do nothing but harm to their reputation. Overall, these four booklets are a bit of a mixture. Two are excellent, one is good and one is awful. The first three would usefully enhance the knowledge of appropriate personnel, and they would also be useful additions to the training packs of financial management trainees. ALAN SANGSTER University of Aberdeen
S. James & C. Nobes THE
ECONOMICS
OF TAXATION
Philip Allan (Oxford,
1988). 3rd edn. 355 pp. Al2.45
(pbk); A29.50 (hbk)
This popular text, in its third edition, takes into account the replacement of capital transfer tax by inheritance tax and the introduction of the community charge. It applies the revised tax rates for 1988/89 proposed in the 1988 budget. In referring to legislation, however, it keeps to the Income and Corporation Taxes Act of 1970 rather than revising to that of 1988. The separate Workbook which accompanied earlier editions has now disappeared. Some of the Workbook material has been brought into the final chapter of the book in order to provide numerical illustrations. The structure of the book has remained substantially unaltered since its first edition. In effect it is two books; the first dealing with economic theory and principles of taxation and the second dealing with fiscal policy and some applications of tax practice. This is to be contrasted with another popular text, that of Cope (1988) which more successfully integrates economic theory, policy issues and practical aspects of taxation.