1. Audit, Assurance and XBRL
9th International XBRL Conference
Wednesday, May 12, 2004 Special Interest Group Day
XBRL for Preparers – Accountants, Corporates & Small-Medium Enterprises (SMEs)
Eric E Cohen, XBRL Global Technical Leader, PricewaterhouseCoopers

2. What If?
The market could get hints, glimmers, possibilities … right from the horse’s mouth - with risk information.
Or, a fact could be pulled from the audited financials, reported separately in a press release, but maintain all of its context and “audit-ness”?

3. Agenda In this session you will learn about:
The global move to real-time disclosure and more accountability about controls
The auditing profession’s exploration of expanded and new audit and assurance services
The role XBRL, and particularly XBRL GL, can play in helping businesses small and large cope with and benefit from the new integration

4. Move to Detail, Real-time and Controls
US, Canada, Australia
Sarbanes Oxley 409 and equivalents
Move from “history” to “in-process” view
“The ‘virtual close’ is SO 1990s”?
Greater demand on internal controls

6. Auditing Profession and New Services
404 Not found?
Continuous Auditing
Data Assurance and Data Level Assurance
Best of the “new”
The right information much more rapidly
Lower the cost of collection, analysis and audit
Information with reliability of information
Data quality, metadata quality, ontology quality
Data level assurance
Best of the “old”
No material misstatement
Suitability to purpose
Helpful to decision making
Risk/reward for auditor
Cost/benefit for stakeholders

7. BUSINESS XBRL (e-)Business Role of XBRL and XBRL GL
Investors
Aggregators
Regulators
Creditors
Lenders
Tax
Website
Transaction Creation
ERP
G/L Packages
CRM
Orders
A/P
Delivery
Customers
A/R
2-way
Suppliers
One
way
XBRL
BUSINESS REPORTING
Detail to summary
Intra system
XBRL GL
Journal Taxonomy
Detail
Together they take us from transaction XML to the end user of the data. Extends reporting to data capture at the accounting recognition stage. Note – it does more than “accounting” – anything that can be classified and recorded, like performance metrics, can be represented.
Accounting
recognition/
classification
(e-)Business
X12, UN/CEFACT Forum, UBL, HR-XML, ACORD, MISMO, and other XML INITIATIVES

8. Tools for Participants
Management
Internal Auditors
External Auditors

9. Benefits All Large companies Smaller companies Auditors
One interface to all packages
Easier, standardized data access
Changes in responsibilities
S-OX
Large companies
Faster, more integrated, more controls
Smaller companies
Off-site ownership
Auditors
Third parties relying on assurance

10. Demonstrations XBRL GL in an audit situation
Standard formats mean more intelligence can be built into tooling. What if you could do …

11. For more information Eric E. Cohen eric.e.cohen@us.pwc.com