© 2003 universal business matrix, llc. all rights reserved. xbrl considerations for cpas & cas...

© 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


Objective

Discuss how XBRL can enhance both the efficiency and range of automation on audit working papers.

http://www.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?



How can you have “real time” business reporting without “real time” auditing? You cannot



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



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



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



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



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.



The future (from internal reporting presentation)

Application Data Store

Application Data Store

XBRL

Supports XBRL import and export

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 audited AuditorAuditor



Questions?


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425.285.0200www.ubmatrix.com


© 2003 universal business matrix, llc. all rights reserved. xbrl considerations for cpas & cas...

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