Seattle Method

Computability is the ability for a computer to perform work within a system . In order to make certain we are on the same page; we want to define several specific terms very clearly. A system is a set of elements, structures, connections, types, conditions, boundaries, observations, measurements, algorithms, and interaction patterns between the different parts and boundaries of the system which serves a specific purpose. A system is created by a group of stakeholders that have a shared understanding . Complexity is the degree or level to which a system’s elements, structures, conditions, observations, measurements, and behavior depends on interactions that may, or may not, be cleanly decomposed into it understandable independent parts. There tends to be three levels of complexity which have an impact on computability of a system: simple, complicated, and complex. Simple system (a.k.a. non-complex) : Predictable and deterministic. The system is “simple” or "non-complex" and ...

Both standardized forms and customized reports have their pros and cons and specific capabilities. Financial statements and financial reporting as practiced when using financial reporting frameworks (a.k.a. reporting schemes) such as United States Generally Accepted Accounting Principles ( US GAAP ), International Financial Reporting Standards ( IFRS ), Government Accounting Standards in the United States ( GAS ), International Public Sector Accounting Standards ( IPSAS ), and other such financial reporting frameworks are not "standardized forms". Rather, such financial reporting frameworks are intended to be, and should be, "customized reports". If a customized report type approach is used, "freeform" or uncontrolled report customizations simply will not work.  Rather a "controlled report model" approach must be used in order to keep reports created within the boundaries of a specified report model in order to facilitate both the flexibility ne...

A model is an intentional abstraction of reality: a simplified, structured way of describing a system so people can understand it, communicate about it, and solve problems together. It is not the real-world thing itself, but a useful approximation that captures the essential elements, relationships, and patterns of a subject domain.  A model is an abstraction of reality according to a certain conceptualization . Modeling is the process of organizing information for community use in the form of a model.  The model provides a framework for human communication about the subject domain, a mechanism for explaining conclusions about the subject domain, an a mechanism for managing varying viewpoints within the subject domain. A map is one of the clearest examples of a model. You might have heard the phrase, "The map is not the territory."  The map is not the actual territory, but a map can be quite useful in navigating a territory. A map includes just enough information about t...

"Isn't it astonishing that all these secrets have been preserved for so many years just so we could discover them!!"  -- Orville Wright, June 7, 1903 Accounting, reporting, auditing, and analysis will go through a significant refactoring over the coming years.  This refactoring will transform the roles of accountants, auditors, and analysts from their current roles as "data janitors" into curators and stewards of knowledge and truth. Allow me to explain. The Legacy Paradigm: Systems Built Assuming Inconsistency For decades, accounting information systems assumed that data would be inconsistent. Errors were expected, and organizations compensated by building manual pipelines for checking, fixing, and reconciling information; a perpetual cycle of remediation. This approach produced two forms of fragmentation: Physical fragmentation : data scattered across spreadsheets, ledgers, platforms, and files  Semantic fragmentation : incompatible meanings, definitions, and ...

For decades, accounting information systems were not engineered to ensure that data remained consistent by design. In that paradigm, inconsistency is assumed. Errors inevitably enter the system, and organizations respond by building endless processes (a.k.a. pipelines) that allowed humans to manually check, fix, adjust, and reconcile. This mindset treats truth as something assembled after the fact, through labor‑intensive cleanup. It is a paradigm of perpetual remediation . This legacy mindset also produces physical fragmentation (data scattered across systems, files, electronic spreadsheets, ledgers, and platforms) and semantic fragmentation (incompatible meanings, definitions, and structures). Fragmentation has costs associated with it.  For example, once fragmented the traceability and provenance chain breaks. You cannot reliably follow a fact from its origin to its use. You cannot prove what is true; only reconcile what went wrong. Accounting & Audit by Design (A&AD)...

The Accounting & Audit by Design (A&AD) Framework is about freedom from drudgery for accountants, auditors, and analysts. It is about streamlining processes. A&AD is about eliminating the waste of time and energy that goes into transaction chasing. A&AD is about fixing processes that allow mistakes rather than spending time fixing mistakes a process allowed or dealing with the consequences of a mistake escaping from the system undetected. The following sections will help you understand what the Accounting & Audit by Design (A&AD) Framework is and what it enables. Environment What is A&AD? Why A&AD Now? How does A&AD Work? Business Outcome Fifty to seventy five year ago it would have been impossible to contemplate something like A&AD; it just was not feasible. We did the best we could to implement accounting information systems using computers and software that we had at the time.  That gave us the paradigm, the normal science per The Kuhn Cy...