Skip 2015 The AICPA Audit Data Standards & XBRL GL AIS Educators Conference Colorado Springs, CO 2015 Clinton E. White, Jr (Skip) – U of Delaware

Skip 2015 The AICPA Audit Data Stds. The ADS: The ADS: – Objective: to standardize the format of data fields and files commonly requested for audit and related purposes (AICPA, Assurance Services Executive Committee, 2013) XBRL GL (global ledger) : XBRL GL (global ledger) : – Objective: to standardize the format for representing the data fields found in ERP/ AISs and transaction reports (XBRL International, 2015)

Skip 2015 ADS The Audit Data Standards The Audit Data Standards – To improve the communication between auditors, accountants, and IT personnel involved in the request for, and exchange of, a company’s data, as well as, the efficiency and effectiveness of the audit process (ADS Working Group, 2013)

Skip 2015 The Audit Data Standards The challenge for both management & auditors: The challenge for both management & auditors: – Obtaining accurate data in a usable format following a repeatable process – The ADSs: Facilitate identifying key info needed for audit purposes in a standard format Facilitate identifying key info needed for audit purposes in a standard format Facilitate being able to assess its completeness and integrity Facilitate being able to assess its completeness and integrity The result should be consistent, understandable data & the opportunity for more extensive analysis The result should be consistent, understandable data & the opportunity for more extensive analysis

Skip 2015 The ADSs The ADSs (April 2015): The ADSs (April 2015): – Data table and field names & supplemental questions: The Base ADS The Base ADS – User_Listing (table) » User_ID, First_Name, & Last_Name – Business_Unit_Listing ( table) » Business_Unit_Code, Business_Unit_Description The General Ledger ADS The General Ledger ADS – GL_Detail_YYYYMMDD_YYYYMMDD (table) » Journal_ID, Effective_Date, Entry_Date, User_ID, Amount, – Trial_Balance_YYYYMMDD (table) – Chart_of_Accounts (table) Order-to-Cash & Purchase-to-Payment (draft) Order-to-Cash & Purchase-to-Payment (draft)

Skip 2015 The Order-to-Cash Cycle

Skip 2015 The Order-to-Cash Cycle When you consider the Order-to-Cash cycle of your client: When you consider the Order-to-Cash cycle of your client: – What data would you like to have to investigate the reliability of the processing of orders and the accuracy of the data in their related accounts? When you request the data that you need, how do you communicate your request to your client? When you request the data that you need, how do you communicate your request to your client? How do you document your request? How do you document your request? How do you verify that you received what you requested? How do you verify that you received what you requested?

Skip 2015 XBRL GL XBRL Global Ledger: XBRL Global Ledger: – An XBRL specification for tagging, formatting, and moving data from an ERP/AIS system to another information system – An XBRL GL instance document is embedded within an XBRL document gl-cor:accountingEntries gl-cor:accountingEntries – gl-cor:documentInfo – gl-cor:entityInformation – gl-cor:entryHeader » gl-cor:entryDetail

Skip 2015 The Order-to-Cash ADS The Order-to-Cash Subledger ADS: The Order-to-Cash Subledger ADS: – Specifies a number of data fields found in tables in an ERP/AIS’s database – These fields are then mapped to elements in a standard XBRL GL instance document – The client’s data would be put into an XBRL GL instance which can then be validated and analyzed for audit purposes And, it is a documented & repeatable process And, it is a documented & repeatable process

Skip 2015

The ADSs The ADSs: The ADSs: – Adoption is voluntary Benefits will drive adoption Benefits will drive adoption – A company: Would create routines to extract their data and populate XBRL GL instance documents Would create routines to extract their data and populate XBRL GL instance documents – Major advantages: A standard way for internal & external auditors to communicate data needs to the IT staff A standard way for internal & external auditors to communicate data needs to the IT staff Data is extracted in a standard format Data is extracted in a standard format A documented, reliable, & repeatable process that will streamline audits A documented, reliable, & repeatable process that will streamline audits

Skip 2015 Resources XBRL.US XBRL.US – XBRL International: XBRL International: – The AICPA ADS: The AICPA ADS: – uranceadvisoryservices/pages/auditdatast andardworkinggroup.aspx uranceadvisoryservices/pages/auditdatast andardworkinggroup.aspx uranceadvisoryservices/pages/auditdatast andardworkinggroup.aspx