Insolvency & Intelligent Systems Research

This web page describes a program of research and publications over the past twenty years which was motivated by three major questions:

1. How do expert insolvency practitioners make decisions about the future of companies in financial distress?

This led to the building of INSOLVE, an intelligent computer-based system, as a way of explicitly representing the knowledge of expert insolvency practitioners in a testable form. The results provided an in-depth understanding of the decision-making processes used by insolvency practitioners in dealing with companies in financial distress.

2. Under what conditions is an intelligent system likely to lead to improved decision-making?

This led to a series of experiments that tested, under varying conditions, whether novice insolvency practitioners could perform as well as experts by using an intelligent system. The results revealed that the expectation that novices can use intelligent systems to perform like experts is not supported by empirical evidence.

3. Is it possible to rapidly accelerate expertise development in junior insolvency professionals by using an intelligent system (INSOLVE), case-based learning and knowledge mapping techniques to facilitate current decision making performance?

This led to the development of INCASE, case-learning software, which contained rich problem-based descriptions from fifteen different insolvency case reconstructions; and a series of experiments that tested, under varying conditions, whether the use of INSOLVE and case based learning could facilitate rapid knowledge transfer to junior insolvency professionals. The data is being analysed and the results will be available in the near future.

Research Grants

2008-2011, Accelerating Expertise Development Using Knowledge Structures and Expert Systems (S.A. Leech, V. Arnold, J. Rose and S.G. Sutton), Large ARC Discovery Grant, $432,000.

2003-2006, The Impact of Intelligent Decision Aids on Human Knowledge Acquisition (S.A. Leech, P. Collier V. Arnold, and S.G. Sutton), Large ARC Discovery Grant, $144,000.

1999-2001, The Impact of Intelligent Decision Aids on Human Decision Making (S.A. Leech, P. Collier V. Arnold, and S.G. Sutton), Large ARC Grant, $53,000.

1997, Identification of factors that determine the use and reliance on expert systems concerning insolvency decisions (S.A. Leech, P.A. Collier, S.G. Sutton and V. Arnold), Auditors’ and Liquidators’ Trust Fund Research Grant, $2,654.

1995, An Expert System for Insolvency Practitioners (S.A. Leech and? P.A. Collier), I.T. Chapter of the Institute of Chartered Accountants in Australia Research Grant, $5,500.

1994-1996, A Theory of Decision Making for Provisional Liquidations (S.A. Leech and P.A. Collier), Large ARC Grant, $64,000.

1994, An Expert System for Insolvency Practitioners (S.A. Leech and P.A. Collier), I.T. Chapter of the Institute of Chartered Accountants in Australia Research Grant, $6,220.

Awards

The 2011 Notable Contribution to the Accounting Information Systems Literature Award by the American Accounting Association (Information Systems Section) for the paper: Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton2006 The Differential Use and Effect of Knowledge-based System Explanations in Novice and Expert Judgment Decisions,MIS Quarterly,30(1), (March) 79-97. This award recognizes “exceptional contributions to AIS research, theory and practice”.

Publications

Journals

Arnold V, Collier, P, Leech SA, Sutton S & Vincent A. (2013). INCASE: Simulating Experience to Accelerate Expertise Development by Knowledge Workers. Intelligent Systems in Accounting, Finance & Management, 20: 1-21

Leech, S.A., (2010), Intelligent Systems Research in Insolvency and Corporate Recovery, International Review of Business Research Papers, 6(5), 137-144.

Leech, S.A., (2008), The Use and Misuse of Intelligent Systems in Accounting: The Risk of Technology Dominance, Insights, 4, 37-41.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton (2006), The Differential Use and Effect of Knowledge-based System Explanations in Novice and Expert Judgment Decisions, MIS Quarterly, 30(1), (March) 79-97.

Collier, P.A. and S.A. Leech, (2005), Modeling Insolvency Decisions with Process and Hierarchical Weighted-additive Methods in M.Vasarhelyi, E.Bonson and R.Hoitash (Eds) Artificial Intelligence in Accounting and Auditing Volume 6 International Perspectives, Markus Weiner Publishers, Princeton, New Jersey, 90-102.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton (2005), An Investigation of the Use of Knowledge Based Systems to Promote Judgment Consistency in Multi-Cultural Firm Environments, Journal of Emerging Technologies in Accounting, 2, 33-59.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton (2004), Explanation Provision and Use in an Intelligent Decision Aid, Intelligent Systems in Accounting, Finance and Management, 12(1), 5-27.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton (2004), The Impact of Intelligent Decision Aids on Experienced and Novice Decision Makers' Judgments, Accounting and Finance, 44(1), 1-26.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, (2001), Unveiling the Black Box of Human-Computer Interaction: The Need for Replay Process Tracing in Decision Aid Research, Advances in Accounting Behavioral Research, 4: 381-405.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (2001), The Impact of Political Pressure on Novice Decision Makers: Are Auditors Qualified to make Going Concern Judgments?, Critical Perspectives on Accounting, 12(3), (June): 323-338.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (2000), The Effect of Experience and Complexity on Order and Recency Bias in Decision Making by Professional Accountants, Accounting and Finance, 40(2), (July): 109-134.

Leech, S.A., P.A. Collier and N. Clark, (1999), A Generalized Model of Decision-Making Processes for Companies in Financial Distress, Accounting Forum, 23(2), (June): 155-174.

Collier, P.A., S.A. Leech and N. Clark, (1999), A Validated Expert System for Decision Making in Corporate Recovery, International Journal of Intelligent Systems in Accounting, Finance and Management, 8(2): 75-88.

Leech, S.A., P.A.Collier and N. Clark, (1998), Modeling Expertise: A Case Study using Multiple Insolvency Experts, Advances in Accounting Information Systems, 6: 85-105.

Leech, S.A. and P.A. Collier, (1996), Understanding Insolvency Decisions, Charter, (October): 38-40.

Leech, S.A. and P.A. Collier, (1995), Will the Real Experts Please Stand Up, IT Chapter News, Institute of Chartered Accountants in Australia, (Autumn): 1-3.

Leech, S.A. and T-L Sexton, (1994), Liquidate or Trade Out An Expert System to Explain the Decision Process, Australian Accounting Review, 4(1), (May): 28-36.

Conference & Seminar Papers/Presentations

Leech, S.A., (2007), The Use and Misuse of Intelligent Systems in Accounting: The Risk of Technology Dominance, 68th Annual Research Lecture CPA Australia & the University of Melbourne, The University of Melbourne, (September), Melbourne.

Leech, S.A., (2005), Understanding Decision Aid Research in Accounting, Research Seminar Program, University of Maastricht, (September), The Netherlands.

Leech, S.A., (2004), Mind versus Machine: Using Artificial Intelligence for Decision Making by Professional Accountants, Keynote Address, Digital Accounting Research Conference (October) Huelva, Spain (invited speaker).

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, (2004), Using Knowledge Based Systems To Promote Judgment Consistency In Multi-National Accounting Firms, Research Seminar Program, University of New England, (September), Armidale.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, (2004), Using Knowledge Based Systems To Promote Judgment Consistency In Multi-Cultural Firm Environments, American Accounting Association Annual Meeting, (August), Orlando, Florida.

Leech, S.A., (2004), Mind versus Machine: Understanding Knowledge Based Expert System Research in Accounting, Seventh European Conference on Accounting Information Systems, (March), Prague, Czech Republic (invited speaker).

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, (2004), Using Knowledge Based Systems To Promote Judgment Consistency In Multi-National Accounting Firms, 27th Annual Congress, European Accounting Association, (March), Prague, Czech Republic.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, (2003), Using Knowledge Based Systems To Promote Judgment Consistency In Multi-Cultural Firm Environments, International Research Symposium on Accounting Information Systems, Seattle, Washington, (December).

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, (2003), Using Knowledge Based Systems To Promote Judgment Consistency In Multi-Cultural Firm Environments, Research Seminar Program, University of Tasmania, (September), Hobart.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, (2003), The Differential Use And Effect Of Knowledge-Based System Explanations In Novice And Expert Judgment Decisions, American Accounting Association Annual Meeting, (August), Honolulu, Hawaii.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, The Differential Use and Effect of Knowledge-based System Explanations in Novice and Expert Judgment Decisions, Research Seminar Program, The University of Melbourne, (April), Melbourne.

Arnold, V., N. Clark, P.A. Collier, S.A. Leech and S.G. Sutton, (2003), Experience Effects on Professional Accountant’s Use and Acceptance of Knowledge-based System Explanations, American Accounting Association Auditing Section Midyear Conference, (January), Huntington Beach, California.

Leech, S.A., (2002), Understanding the Impact of Information Systems on Decision Making by Professional Accountants, Accounting and Finance Research Unit Conference, The Open University Business School,(September), Milton Keynes, England.

Leech, S.A., (2001), Understanding the Impact of Information Systems on Decision Making by Professional Accountants, CPA Australia Annual Research Lecture, The University of Tasmania, (August), Hobart and Launceston.

Leech, S.A., (2001), Mind versus Machine: Using Artificial Intelligence for Decision Making in Insolvency, Inaugural Lecture, The University of Melbourne, (May), Melbourne.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (2000), The Impact of Political Pressure on Novice Decision Makers: Are Auditors Qualified to make Going Concern Judgments, 23rd Annual Congress, European Accounting Association, (March), Munich, Germany.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (2000), The Effect of Experience and Complexity on Order and Recency Bias in Decision Making by Professional Accountants, American Accounting Association Auditing Section Midyear Conference, (January), Newport Beach, California.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1999), The Impact of Intelligent Decision Aids on Experienced and Novice Decision Makers' Judgments, Research Seminar Program, Texas Tech University, (September), Lubbock, Texas.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1999), The Impact of Intelligent Decision Aids on Experienced and Novice Decision Makers' Judgments, Research Workshop Program, Michigan State University, (September), East Lansing, Michigan.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1999), The Impact of Intelligent Decision Aids on Experienced and Novice Decision Maker’s Judgments, American Accounting Association Annual Meeting, (August), San Diego, California.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1999), The Impact of Intelligent Decision Aids on Experienced and Novice Decision Maker’s Judgments, Accounting Association of Australia and New Zealand Annual Conference , (July), Cairns.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1999), The Impact of Intelligent Decision Aids on Experienced and Novice Auditors, International Symposium on Audit Research (ISAR1999), (June), Los Angeles, California.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1999), The Impact of Political Pressure on Novice Decision Makers: Are Auditors Qualified to make Going Concern Judgments?, Critical Perspectives on Accounting 1999 Conference, (April), New York.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1999), The Impact of Intelligent Decision Aids on Experienced and Novice Decision Makers, Sixth Annual AIS Research Symposium, (February), Phoenix, Arizona.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1999), The Impact of Intelligent Decision Aids on Experienced and Novice Decision Makers, American Accounting Association Auditing Section Midyear Conference, (January), Atlanta, Georgia.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1998), The Impact of Intelligent Decision Aids on Experienced and Novice Decision Makers' Judgments, Research Seminar Program, The University of Melbourne, (September), Melbourne.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1998), The Effect of Experience on Order and Recency Bias in Decision Making by Professional Accountants, Accounting Association of Australia and New Zealand Annual Conference , (July) Adelaide.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1998), The Impact of Intelligent Decision Aids on Expert and Novice Decision Makers’ Judgment Processes, Research Seminar Program, University of Tasmania, (April), Hobart.

Arnold, V., P.A. Collier, S.A. Leech and S.G. Sutton, (1998), The Impact of Intelligent Decision Aids on Non-Expert Users: A Partial Test of the Theory of Technology Dominance, Fifth Annual AIS Research Symposium, (February) Phoenix, Arizona.

Leech, S.A. and P.A. Collier, (1997), Receiverships: To trade on or not to trade on; A decision support model, Insolvency Practitioners Association of Australia (Melbourne Forum) Conference, (October), Cairns.

Leech, S.A., P.A. Collier and N. Clark, (1997), A Cognitive Computational Model of Knowledge and Reasoning in Insolvency, Research Seminar Program, LaTrobe University, (September), Melbourne.

Leech, S.A., P.A. Collier and N. Clark, (1997), A Cognitive Computational Model of Knowledge and Reasoning in Insolvency, Research Seminar Program, University of Western Sydney, (September), Sydney.

Leech, S.A., P.A. Collier and N. Clark, (1997), A Cognitive Computational Model of Knowledge and Reasoning in Insolvency, Research Seminar Program, Deakin University, (September), Melbourne.

Leech, S.A., P.A. Collier and N. Clark, (1997), An Expert System for Modeling Reasoning in Corporate Recovery, American Accounting Association Workshop on AI/ES in Accounting, (August), Dallas Texas.

Collier, P.A., S.A. Leech and N. Clark, (1997), A Validated Expert System for Decision-Making in Insolvency, Workshop on Business Applications of AI, Fifteenth International Joint Conference on Artificial Intelligence, (August), Nagaya, Japan: 9-21.

Collier, P.A., S.A. Leech and N. Clark, (1997), A Cognitive Computational Model of Knowledge and Reasoning in Insolvency, Research Seminar Program, Edith Cowan University, (April), Perth.

Leech, S.A., P.A. Collier and N. Clark, (1997), A Model of Expertise in Insolvency, 20th Annual Congress, European Accounting Association, (April) Graz, Austria.

Leech, S.A., P.A. Collier and N. Clark, (1997), A Cognitive Computational Model of Knowledge and Reasoning in Insolvency, Fourth Annual AIS Research Symposium, (February), Phoenix Arizona.

Collier, P.A. and S.A. Leech, (1996), Modelling Insolvency Decisions with Process and Hierarchical Weighted-additive Methods, in G.J. Sierra and E. Bronson (Eds) Intelligent Systems in Accounting and Finance, Universidad de Huelva: 103-124, being the proceedings of the Second International Meeting on Artificial Intelligence in Accounting, Finance and Tax, (September), Huelva, Spain.

Leech, S.A. and P.A. Collier, (1996), Modelling Holistic Judgments in Insolvency, American Accounting Association Annual Meeting, (August), Chicago.

Leech, S.A. and P.A. Collier, (1996), Modelling Insolvency Decisions, Proceedings of the First Asia-Pacific Decision Sciences Institute Conference, (June), The Hong Kong University of Science and Technology, Hong Kong: 545-552.

Collier, P.A. and S.A. Leech, (1996), Modelling and Implementing Aspects of Holistic Judgment in Industrial Decision Making, in T. Tanaka, S. Ohsuga, and M. Ali (eds) Industrial and Engineering Applications of Artificial Intelligence and Expert Systems, Gordon and Breach Amsterdam: 777 (abstract only) being Proceedings of the Ninth International Conference on Industrial and Engineering Applications of Artificial Intelligence and Expert Systems, (June), Fukuoka, Japan.

Leech, S.A. and P.A. Collier, (1996), Modelling Financial and Business Agents in Insolvency Decisions, 19th Annual Congress European Accounting Association, (May), Norges Handelshoyskole (NHH), Bergen, Norway.

Collier, P.A. and S.A. Leech, (1995), Acquiring and Representing a Theory of Decision Making for Insolvency, AI’95 Workshop on Intelligent Decision Support Systems, (November), Canberra: 67-76.

Leech, S.A. and P.A. Collier, (1995), A Expert System for Insolvency Judgments, Association for Information Systems, Proceedings of the First Americas Conference on Information Systems, (August), Pittsburgh: 537-539.

Leech, S.A. and P.A. Collier, (1995), A Framework for Acquiring a Theory of Decision Making for Insolvency Using an Expert Systems Research Methodology, AI/ES Section, American Accounting Association, Fourth Annual Research Workshop on AI/ES in Accounting, Auditing and Tax, (August), Orlando Florida.

Working Papers

Arnold, V., Collier, S.A. Leech, S.G. Sutton and A. Vincent, (2011), Incase: Simulating Experience to Accelerate Expertise Development By Knowledge Workers.

For further details, please contact:

Professor Stewart Leech saleech@unimelb.edu.au
Professor Vicky Arnold varnold@bus.ucf.edu
Professor Steve Sutton ssutton@bus.ucf.edu
Associate Professor Phil Collier phil@rubicon.org.au