1. Skip 2015 The AICPA Audit Data Standards - Intro & an academic’s perspective - UWCISA Information Integrity & Systems Assurance Toronto - October 2015 Clinton E. White, Jr (Skip) – U of Delaware skipw@udel.edu

2. 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) – 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 of the audit process (ADS Working Group, 2013)

3. 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

4. Skip 2015 The ADSs Audit Data Standards (July, 2015) Audit Data Standards (July, 2015) – The Base standard: Basic information about the client’s ERP/AIS, Business units, and System users Basic information about the client’s ERP/AIS, Business units, and System users – The GL standard: GL details, Trial balance, Chart of accounts, & Source listing GL details, Trial balance, Chart of accounts, & Source listing – The Order-to-Cash subledger standard: Customers, Orders, Shipments, Invoices, AR, & Cash Customers, Orders, Shipments, Invoices, AR, & Cash – The Procure-to-Payment subledger standard: Suppliers, POs, Goods recvd., Invoices recvd., AP, & Payments Suppliers, POs, Goods recvd., Invoices recvd., AP, & Payments

5. Skip 2015 The Base ADS

6. Skip 2015 The GL ADS

7. Skip 2015 The O2C ADS (part 1)

8. Skip 2015 The O2C ADS (part 2)

9. Skip 2015 The Order-to-Cash Cycle

10. 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?

11. Skip 2015 ERP/AIS Relational Tables Employees FirstName LastName ContactInfo EmployeeId Departments DepartmentName DeptAddress DepartmentHeadId EmployeeId Title ERPUsers ERPId EmployeeId ActiveStatus StatusModifiedDate User_Listing User_ID First_Name Last_Name User_Active_Status Title Department Audit Data Standard Table

12. Skip 2015 Data Format What format do you want the data in? What format do you want the data in? – Flat-file format (pipe-delimited): 12345 | Active | Skip | White | CIO 12345 | Active | Skip | White | CIO – XBRL GL format: – 12345 – 12345 – systemUser – systemUser – true – true – Skip – Skip – White – White – CIO – CIO

13. Skip 2015

16. 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

17. Skip 2015 Resources The AICPA ADS Library: The AICPA ADS Library: – http://www.aicpa.org/InterestAreas/FRC/ AssuranceAdvisoryServices/Pages/Audit DataStandardWorkingGroup.aspx http://www.aicpa.org/InterestAreas/FRC/ AssuranceAdvisoryServices/Pages/Audit DataStandardWorkingGroup.aspx http://www.aicpa.org/InterestAreas/FRC/ AssuranceAdvisoryServices/Pages/Audit DataStandardWorkingGroup.aspx XBRL.US XBRL.US – http://xbrl.us/Pages/default.aspx http://xbrl.us/Pages/default.aspx XBRL International: XBRL International: – https://www.xbrl.org/ https://www.xbrl.org/

18. Skip 2015 The future is already here – its just unevenly distributed! William Gibson Thanks for your attention! Skip skipw@udel.edu