1. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com XBRL Considerations for CPAs & CAs in Public Practice XBRL for Audit Workpapers Charles Hoffman, CPA Director of Innovative Solutions

2. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 2www.ubmatrix.com Objective Discuss how XBRL can enhance both the efficiency and range of automation on audit working papers.

3. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 3www.ubmatrix.com Real time business reporting “The business reporting model of the future is online, real-time disclosure.” The Business Reporting Model of the Future and Real Time Information Flows, a Discussion with Alan Anderson, Senior Vice President – Member & Public Interests, AICPA What does real-time disclosure mean to auditing, the audit process, audit working papers?

4. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 4www.ubmatrix.com How can you have “real time” business reporting without “real time” auditing?  You cannot

5. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 5www.ubmatrix.com What exists now  Electronic work papers  Enables the flow of information  Transfer without faxing or mailing  Can exist in multiple locations at once  Routed to others  Copied and pasted  Cannot get into and reuse [enough] specific pieces of data in the work papers, particularly in a standard way  There are some proprietary solutions, such as ACL

6. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 6www.ubmatrix.com What if you could get into ALL data  Extract specific pieces of information  Global, standard format; rather than proprietary implementations of specific audit tools  Business rules, semantic validation of the data  Rules written by business people, not programmers  Automate, to some degree, testing of data

7. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 7www.ubmatrix.com But HOW do we “get into the data”  Maybe XBRL?  If not XBRL, then what other standard?  It takes significant effort to create and maintain a standard

8. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 8www.ubmatrix.com XBRL can give you this  XBRL not just for financial reporting  One of first uses we thought of was audit schedules  Internal audit and external audit  Audit working papers using one standard format for data exchange

9. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 9www.ubmatrix.com One vision of XBRL in auditing: FDIC  FDIC creating reporting system using XBRL rather than proprietary reporting format for bank call reports  But the “grand vision” is larger  “Grand vision” is for bank examiners to audit member banks “real time”  Problem loans, etc.

10. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 10www.ubmatrix.com The future (from internal reporting presentation) Application Data Store XBRL Supports XBRL import and export One standard format (not proprietary), syntactic and semantic validation (business rules) to help ensure data accuracy 1:many rule engine based data validation Client being auditedAuditor

11. © 2003 Universal Business Matrix, LLC. All rights reserved. www.ubmatrix.com Page 11www.ubmatrix.com Questions?

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