Abstract
A RESEARCH ABOUT USING TYPE-2 FUZZY INFERENCE SYSTEM IN RISK ASSESSMENT WITHIN INTERNAL CONTROL
According to Law number 5018 Public Financial Management and Control Law, it is decreed to set and operate internal control systems in public administrations. Risk assessment is one of the five elements of internal control systems. Currently, risk assessment activities are conducted as directly and simply grading the risk criteria, defined by top management, on a scorecard by related individuals. Because this process involves subjective judgements, it might not represent fully realistic results. The usefulness of fuzzy logic, which is suitable for the uncertainty of risk and human behavior, is proved for risk assessment activities within many various fields.
This study aims to research the appropriateness of Type-2 Fuzzy Inference System for risk assessment activities. Scope of the research is the risk assessment phase which is an element of internal control systems of public administrations. In accordance with purpose and scope of the study, the risk assessment example, given in RY Box 13 of Ministry of Finance – General Directorate of Budget and Financial Control–Guide for Public Internal Control, is solved by applying MATLAB program and Sugeno method with Type-2 Fuzzy Set. Findings indicate that Type-2 Inference System is quite suitable for risk assessment activities within internal control systems.
Keywords
Internal control, risk assessment, Type-2 fuzzy set.
