Automatic Rendering Tool and Digital Audit Process Innovation Nov 2005YongMoon LeeKICPA & AICPA

Automatic Rendering Tools

Table of ContentsDigital Audit Process InnovationXBRL Adoption Plan By Financial Supervisory Service of Korea

Automatic Rendering Tools

Taxonomy and Instance Document OverviewConsideration For XBRL Instance DocumentScreen ShotBenefits expected

Taxonomy Framework For Audit ReportAccountantsReport(krfr-ar)Primary TermsElements(krfr-pte)Primary TermsRelationships(krfr-ptr)Commercial &Industrial(kr-gaap-ci)CommanyExtensionTaxonomyInstance DocumentsAudit Report FileMS Word File

Consideration For XBRL Instance Document

Consideration For XBRL Instance DocumentNeed two versions ofXBRL editor

XBRL FS Editor Digital Audit Process innovationPage *IBcenterFinancial Statement of PositionIncome StatementStatement of Appropriation of Retained EarningsCash Flow StatementNotesAuditors Opinion XBRL Audit Report Preparers Responsibilty Auditors Responsibilty

XBRL Editor Screen Shot

XBRL Editor with Audit Report Rendering Screen ShotMS-Word FIle

Benefits ExpectedAutomation of word processing which can import xbrl instance documentIt can be used for sending the xbrl document after completionIt can attract CPAs interest and can save time and moneyIt can reduce errors in typing and calculation

Digital Audit Process InnovationCurrent ProcessTo Be ModelXBRL GLBenefits expectedConsiderations

Current Process

Digital Audit Process innovationPage *IBcenterLeadsheet,W/PAdjustmentT/B After AdjustmentTrial Balance,Finacial StatementManual Input By AuditorAudit Program/Check ListF/S With Auditors OpinionDart Input(SGML)Manual Input Inspection,Sampling,Confirmation,Calculation,Support byAudit tools

To Be Process (Web Based)

Digital Audit Process innovationPage *IBcenterLeadsheet,W/PAdjustmentT/B After AdjustmentTrial Balance,Finacial StatementAudit Program/Check ListF/S With Auditors OpinionDart Input(XBRL)Automatic Input Inspection,Sampling,Confirmation,Calculation,Support byAudit tools(*)CretopXBRL GL(*)Cretop which is on-line service of credit information can be used for the valuation of Receivable

Audit Process AutomationXBRL GLAudit Working PaperChart of AccountsEntriesAgingTrial BalanceGLInventoryOpen APOpen ARSamplingConfirmationCalculationReportingERP Legacy SYS

XBRL GL CharacteristicsReporting Independent System IndependentConsolidationFlexibilityComplements XBRL for financial reporting

It collects general ledger and after-the-fact receivables, payables, inventory and other non-financial facts, and then permits the representation of that information using traditional summariesand through flexible links to XBRL for reporting.

XBRL GL Characteristics - Reporting IndependentSource : http://www.wbrl.org/GLTaxonomy/

Any developer can create import and export routinesto convert information to XBRL GL format. This means that accounting software developers need only consider one design for their XML import/export file formats. Application service providers can offer to supply XBRL import and output so end-users can more easily use their own data. Companies developing operational products, such as point of sale systems or job costing, or reporting tools can link with many accounting products without needing specialised links to each one. XBRL GL Characteristics - System IndependentSource : http://www.wbrl.org/GLTaxonomy/

ERP And AuditingSAPOracleIBCPeopleSoftAuditAuditAuditAuditdisparate accounting systemsSeparate auditing effortsCurrent Situation

XBRL GL and ERPSAPOracleIBCPeopleSoftXBRL GL InstanceAuditingSystems independentERP VendorsXBRL GL Taxonomy

Popular low-end products and mid-market solutions are not designed to facilitate consolidating data from multiple organisations.

XBRL GL can help transfer the general ledgerfrom one system to another, be used to combine the operations of multiple organisations, or bring data into tools that will do the consolidation. XBRL GL Characteristics - Consolidation Source : http://www.wbrl.org/GLTaxonomy/

XBRL GL provides flexibility, overcoming the limitations of other approaches such as Electronic Data Interchange (EDI). It offers an extensible, flexible, multi-national solution that can exchange the data required by internal finance, accountants, and creditors.XBRL GL Characteristics - FlexibilitySource : http://www.wbrl.org/GLTaxonomy/

XBRL GL Characteristics Complements XBRL FRSource : http://www.wbrl.org/GLTaxonomy/It complements XBRL for financial reporting, linking financial reports to the detail behind them, providing all the specific information required for audit workpapers, budget planning, and detailed reporting.

XBRL Chart Of Accounts

XBRL FR Instance Doc

XBRL GL Instance Doc

XBRL FR and XBRL GL Relationship

YongMoon Lee 2005-12-01 Junpyo 10 standard The comment for this entry JE 1 10100 Rent koreangaap account D 50000 2005-11-08 1141 IBCENTER Ltd V check posted 2 10200 Chequing koreangaap account C 50000 2005-11-08 1130 IBCENTER Ltd V check posted

XBRL GL Instance Document - example

Chart Of Accounts Instance Document - example

1111 Cash account

http://www.xbrl.or.kr/kr/gaap/ci/2005-10-01/kr-gaap-ci-2000-07-31 currentAssets.cashCashEquivalents

Benefit expectedDrill Down From Financial Report to GLProductivity IncreaseWork Paper AutomationTo be used for ConsolidationTo Increase TransparencyEnhanced Quality Control Save Space by electronic attachmentsRemote Review

ConsiderationsSize Of XBRL File (1,000,000 Records may be 5G Byte)Speed of Transaction (Much Slower than normal SQL DB)Referential Integrity (Relationship management)Assurance of the identical source

Tax Preparation Process AutomationXBRL GLTax Working PaperChart of AccountsEntriesAgingTrial BalanceGLInventoryOpen APOpen ARValidationCalculationTax Report(XBRL)ERP Legacy SYS(*) Current : Fixed Length Text Electric ReportIRS Internal Process Automation(*) OECD recommends XBRL for tax uses

XBRL Adoption PlanBy Financial Supervisory Service

Financial Information Highway Construction (Based on National Financial Information Framework)XBRL Adoption Plan By Financial Supervisory Service

XBRL Adoption Plan By Financial Supervisory Service

Thank You !!!