1. Skip 2007 1 Auditing an XBRL Instance Document: The Case of United Technologies Corp. A discussion and extension Clinton E. White, Jr Professor of Accounting & MIS Lerner College of Business University of Delaware

2. Skip 2007 2 Boritz and No A mock audit of the UTX filing for the 3 rd Quarter of 2005 A mock audit of the UTX filing for the 3 rd Quarter of 2005 – A thought provoking and important research project – Exposes a number of issues that an auditor or 3 rd party reviewer would face when collecting evidence to provide assurance that an XBRL instance document reports completely and accurately what it is purported to report

3. Skip 2007 3 Boritz and No Audit procedures: Audit procedures: – Applied the available audit guidance materials in planning & conducting their audit – Did a 100% substantive audit – Used primarily manual techniques

4. Skip 2007 4 Understanding context Understanding context: Understanding context: – – – <xbrli:identifier scheme= – "http://www.nyse.com">UTX – "http://www.nyse.com">UTX – – – 2005-09-01 – 2005-09-01 – 2005-09-30 – 2005-09-30 – –

5. Skip 2007 5 Understanding context At least one context element is required in every XBRL instance document At least one context element is required in every XBRL instance document – A context element must have at least: An entity element containing an identifier element An entity element containing an identifier element A period element containing either a startDate/endDate combination or an instant element ( or a forever element) A period element containing either a startDate/endDate combination or an instant element ( or a forever element) – A context element may also contain: A segment element in the entity element A segment element in the entity element A scenario element A scenario element

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8. Skip 2007 8 Understanding context 7 key context elements for consolidated reporting: 7 key context elements for consolidated reporting: – contextRef instant/startDate endDate – Context1 2005-01-01 2005-09-30 – Context2 2005-07-01 2005-09-30 – Context32005-04-01 – Context52005-09-30 – Context82004-12-31 – Context9 2004-01-01 2004-09-30 – Context17 2004-07-01 2004-09-30

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12. Skip 2007 12 The Business Reporting Supply Chain Processes Participants Companies Financial Publishers & Data aggregators Investors Central Banks Trading Partners Management accountants AuditorsRegulators Software Vendors Source:Mike Willis, PWC & XBRL XBRL GL XBRL External Reporting XML Specs Business Operations Internal Business Reporting External Business Reporting Investment Lending Regulation Economic Policymaking

13. Skip 2007 13 Resources Boritz, Efrim and Won Gyun No, Auditing and XBRL Instance Document: The Case of United Technologies Corporation Boritz, Efrim and Won Gyun No, Auditing and XBRL Instance Document: The Case of United Technologies Corporation Dreyer, Christian and Mike Willis, Cheaper, smarter, faster: benefits to analysts from XBRL, Professional Investor (September 2006) Dreyer, Christian and Mike Willis, Cheaper, smarter, faster: benefits to analysts from XBRL, Professional Investor (September 2006) Kay, Michael, XSLT 2.0 (3 rd edition), Wrox – Wiley Publishing (2004) Kay, Michael, XSLT 2.0 (3 rd edition), Wrox – Wiley Publishing (2004) XSLT Tutorial, www.w3schools.com/xsl/ XSLT Tutorial, www.w3schools.com/xsl/