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Knowledge Graph Charles Hoffman, CPA (Charles.Hoffman@me.com) December 21, 2020
Supply Chain Specialist Professional Accountants and Auditors Analyst; Investors; Regulators; Lenders; Data Aggregators Standards Setters; Regulators Extract; analyze Using rules and software Enhance Accounting Educators; Accounting Students Specify Curated Knowledge in Global Standard Knowledge Assembly Use Software Engineers Build tools for working with Interpret; Use Accountants Architect models Verify; Use Use Knowledge Engineers Machine Learning Algorithms Software applications
Internal and External Financial Report Creation Tasks and Process Logical system (example from logical system of accounting, reporting, auditing, and analysis) Internal and External Information Move Transformation process and tasks (High level models) Soft Close Accounting Working Papers DATALOG Internal Data Direct Data Connectors and Services Close Ledgers, Lead Schedules, Closing Book, etc. Knowledge Graph Report Documents Planning and Scheduling ERP System database(s) Consolidation Currency Conversions (if multi-currency) Knowledge Graph Assembly (unitary, governed) Exception Analysis GAAP Conversions (if multi-GAAP) Internal Reporting to Management Sub system database(s) Indirect Extract, Transform, Load Report Semantic HTML, HTML Reconciliation Processes Knowledge Graph Variance Analysis, Peer Benchmarking Adjusting, Reversing, and Closing Entries Other database(s) Consolidation of Subsidiaries and Intercompany Eliminations Publish Rekeying Other Routine and Non-Routine Tasks Spreadsheets Knowledge Graph Hard Close Compute income tax provision Report XBRL, Inline XBRL General Journal Entries, Special Journal Entries GUI/UX generation Files, content management systems, other Research, Ticking, Tying, Cross Casting, and Footing Disclosure management Transaction Detail Analysis Knowledge Graph Variance Analysis; Benchmarking with Peers General Ledger Trial Balance Account Analysis Knowledge Graph External report creation (HTML, PDF, XBRL) Report RDF + OWL + SHACL Other, Automated, Batch, Manual External Data Public data, proprietary services, etc. Internal audit, Independent audit Audit Schedules SEMANTIC SPREADSHEETS
Data, Information, Knowledge, Insight, Wisdom https://random-blather.com/2014/04/28/information-isnt-power/ https://twitter.com/hughcards/status/423952995240648704
Data • Discrete, objective facts (numbers, words) without context or interpretation. DATA: “241,086,000,000”.
Information • Data (discrete facts) in context. • Arranged, collated, categorized. • “Data” organized within the rows and fields of a database has some characteristics of information. INFORMATION: “Assets for the consolidated legal entity Microsoft Corporation as of June 20, 2017 was $241,086,000,000 expressed in US dollars and rounded to the nearest millions of dollars.”
Knowledge • Knowledge is a set of data and information and a combination of skill, know-how, experience which can be used to improve the capacity to take action or support a decision making process. • Discrete facts in context, associations, structures, models, relations, rules KNOWLEDGE: “Assets is part of the Balance Sheet.”; “Assets is a DEBIT.”; “Assets is a STOCK (i.e. as of a certain point in time”; “US Dollars is a type of currency.”; “Microsoft Corporation is part of the DOW 30”; “Corporation is a type of legal entity.”; “Balance sheet is a type of financial disclosure.”; etc.
Knowledge Creation (Deductive, provable) (Inductive, probability) Shawn Riley, Modern Symbolic AI in 2020, https://www.linkedin.com/pulse/modern-symbolic-ai-in2020-shawn-riley/
Proving Knowledge • Theory is used to prove knowledge • Patterns • Model (structures, associations, rules) • Logical system • Testing
Controlling Quality • Comparing model to theory is used to control quality if modifications to model are allowed • Constraining • Measuring • Verifying Salesforce Amazon Facebook Google Apple Microsoft http://xbrl.squarespace.com/journal/2020/4/2/software-companies-prototype.html
Insight • Observation INSIGHT: “Net Income (Loss) divided by Assets is a good indicator of financial performance capabilities.”
Wisdom WISDOM: “Microsoft Corporation is a better investment than General Motors.”
Knowledge Graph :part of :control Rules Facts Knowledge :represents :provides :represents Models; Structures (i.e. Ontology, Theory) Insight Competitive Advantage :part of :part of :drives :leadsTo Associations Terms Innovation; Wisdom
Knowledge Graph :part of :control Rules Information Knowledge :represents :provides :represents Models; Structures (i.e. Ontology, Theory) Insight Competitive Advantage :part of :part of :drives :leadsTo Associations Terms Innovation; Wisdom
Logical Model of Financial Report Pacioli + Model(Rules, Logic, Reasoning Engine) Neo4j (Knowledge graph; graph database)