Predictive analytics in accounting information systems

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Contribution to a Book

Publication Title

The Routledge Handbook Of Accounting Information Systems, Second Edition



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This chapter explores the transformative impact of predictive analytics – a technique that uses data to create mathematical models for making predictions – on the accounting profession. We clarify what predictive analytics is and how it differs from other techniques accountants use to support decision making. We explain how predictive analytics can be valuable to people within the organisation and outside of it. Considering the relevance of external auditing within the accounting profession, we discuss the increasing prevalence of predictive analytics for assurance purposes – its adoption, platforms developed, uses to which it is put, and personnel training. We discuss the Helix suite of analytics tools developed by EY as an example of how predictive analytics tools are being integrated into the assurance workflow. Finally, we address research possibilities raised by predictive analytics in the accounting domain, including the relationship between investments in analytics tools and their adoption, and the gaps that seem to exist between predictive analytics capabilities and their actual usage in critical work.


Accounting and Finance; Information Systems and Technology