1. Automatic Rendering Tool and Digital Audit Process Innovation Nov 2005 YongMoon Lee KICPA & AICPA

2. Automatic Rendering Tools Table of Contents Digital Audit Process Innovation XBRL Adoption Plan By Financial Supervisory Service of Korea

3. Automatic Rendering Tools  Taxonomy and Instance Document Overview  Consideration For XBRL Instance Document  Screen Shot  Benefits expected

4. Taxonomy Framework For Audit Report Accountants Report (krfr-ar) Primary Terms Elements (krfr-pte) Primary Terms Relationships (krfr-ptr) Commercial & Industrial (kr-gaap-ci) Commany Extension Taxonomy Instance Documents Audit Report File MS Word File

5. Consideration For XBRL Instance Document Responsibility Financial StatementClient or Entity Audit OpinionAuditor

6. Consideration For XBRL Instance Document Responsibility Financial StatementClient or Entity Audit OpinionAuditor Need two versions of XBRL editor

7. Digital Audit Process innovation Page 7 IBcenter  XBRL FS Editor Financial Statement of Position Income Statement Statement of Appropriation of Retained Earnings Cash Flow Statement Notes Auditor’s Opinion  XBRL Audit Report  Preparer’s Responsibilty  Auditor’s Responsibilty

8. XBRL Editor Screen Shot

9. XBRL Editor with Audit Report Rendering Screen Shot MS-Word FIle

10. Benefits Expected  Automation of word processing which can import xbrl instance document  It can be used for sending the xbrl document after completion  It can attract CPA’s interest and can save time and money  It can reduce errors in typing and calculation

11. Digital Audit Process Innovation  Current Process  To Be Model  XBRL GL  Benefits expected  Considerations

12. Digital Audit Process innovation Page 12 IBcenter  Current Process Leadsheet, W/P Adjustment T/B After Adjustment Trial Balance, Finacial Statement Manual Input By Auditor Audit Program/ Check List F/S With Auditor’s Opinion Dart Input (SGML) Manual Input Inspection, Sampling, Confirmation, Calculation, Support by Audit tools

13. Digital Audit Process innovation Page 13 IBcenter  To Be Process (Web Based) Leadsheet, W/P Adjustment T/B After Adjustment Trial Balance, Finacial Statement Audit Program/ Check List F/S With Auditor’s Opinion Dart Input (XBRL) Automatic Input Inspection, Sampling, Confirmation, Calculation, Support by Audit tools (*)Cretop XBRL GL (*)Cretop which is on-line service of credit information can be used for the valuation of Receivable

14. Audit Process Automation XBRL GL Audit Working Paper Chart of Accounts Entries Aging Trial Balance GL Inventory Open AP Open AR SamplingConfirmation Calculation Reporting ERP Legacy SYS

15. XBRL GL Characteristics Reporting Independent System Independent Consolidation Flexibility Complements XBRL for financial reporting

16. It collects general ledger and after-the-fact receivables, payables, inventory and other non-financial facts, and then permits the representation of that information using traditional summaries and through flexible links to XBRL for reporting. XBRL GL Characteristics - Reporting Independent Source : http://www.wbrl.org/GLTaxonomy/

17. Any developer can create import and export routines to convert information to XBRL GL format. This means that accounting software developers need only consider one design for their XML import/export file formats. Application service providers can offer to supply XBRL import and output so end-users can more easily use their own data. Companies developing operational products, such as point of sale systems or job costing, or reporting tools can link with many accounting products without needing specialised links to each one. XBRL GL Characteristics - System Independent Source : http://www.wbrl.org/GLTaxonomy/

18. ERP And Auditing SAP Oracle IBC PeopleSoft … … … … Audit disparate accounting systems Separate auditing efforts Current Situation

19. XBRL GL and ERP SAP Oracle IBC PeopleSoft … … … … XBRL GL Instance Auditing Systems independent ERP Vendors XBRL GL Taxonomy

20. Popular low-end products and mid-market solutions are not designed to facilitate consolidating data from multiple organisations. XBRL GL can help transfer the general ledger from one system to another, be used to combine the operations of multiple organisations, or bring data into tools that will do the consolidation. XBRL GL Characteristics - Consolidation Source : http://www.wbrl.org/GLTaxonomy/

21. XBRL GL provides flexibility, overcoming the limitations of other approaches such as Electronic Data Interchange (EDI). It offers an extensible, flexible, multi-national solution that can exchange the data required by internal finance, accountants, and creditors. XBRL GL Characteristics - Flexibility Source : http://www.wbrl.org/GLTaxonomy/

22. XBRL GL Characteristics – Complements XBRL FR Source : http://www.wbrl.org/GLTaxonomy/ It complements XBRL for financial reporting, linking financial reports to the detail behind them, providing all the specific information required for audit workpapers, budget planning, and detailed reporting.

23. XBRL Chart Of Accounts XBRL FR Instance Doc XBRL GL Instance Doc XBRL FR and XBRL GL Relationship

24. YongMoon Lee 2005-12-01 Junpyo 10 standard The comment for this entry JE 1 10100 Rent koreangaap account D 50000 2005-11-08 1141 IBCENTER Ltd V check posted 2 10200 Chequing koreangaap account C 50000 2005-11-08 1130 IBCENTER Ltd V check posted XBRL GL Instance Document - example

25. Chart Of Accounts Instance Document - example 1111 Cash account http://www.xbrl.or.kr/kr/gaap/ci/2005-10-01/kr-gaap-ci-2000-07-31 currentAssets.cashCashEquivalents

26. Benefit expected  Drill Down From Financial Report to GL  Productivity Increase  Work Paper Automation  To be used for Consolidation  To Increase Transparency  Enhanced Quality Control  Save Space by electronic attachments  Remote Review

27. Considerations  Size Of XBRL File (1,000,000 Records may be 5G Byte)  Speed of Transaction (Much Slower than normal SQL DB)  Referential Integrity (Relationship management)  Assurance of the identical source

28. Tax Preparation Process Automation XBRL GL Tax Working Paper Chart of Accounts Entries Aging Trial Balance GL Inventory Open AP Open AR Validation Calculation Tax Report (XBRL) ERP Legacy SYS (*) Current : Fixed Length Text Electric Report IRS Internal Process Automation (*) OECD recommends XBRL for tax uses

29. XBRL Adoption Plan By Financial Supervisory Service

30. Financial Information Highway Construction (Based on National Financial Information Framework) XBRL Adoption Plan By Financial Supervisory Service

31. XBRL Adoption Plan By Financial Supervisory Service 2006.7Voluntary Program Financial Institutions And Big Commercial Companies 2007Mandatory ProgramListed Companies 2008Mandatory ProgramAll Audited Companies

32. Thank You !!!