crowe xbrl assurance services - crowe horwath
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Risk Consulting
www.crowehorwath.comAudit | Tax | Advisory | Risk | Performance
Crowe XBRL Assurance ServicesReducing Risks After Expiry of Litigation Relief
The use of eXtensible Business Reporting Language (XBRL) is mandatory for registrants filing a Form 10-K or Form 10-Q with the Securities and Exchange Commission (SEC). Filers may not realize the extent of errors and omissions, poorly mapped or tagged facts, and inappropriate extensions resulting from differences in coding. Litigation relief is expiring, and the risk of a forced restatement is a real concern for many publicly held companies.
A Very Real ThreatCompanies must confirm their XBRL filings are clean, accurate, complete, and – most important – fully compliant with SEC requirements or they face the threat of sanctions and shareholder suits. Filings may be at risk if:
■ Inadequate validation software was used
■ Internal or outsourced resources lacked XBRL expertise, or
■ The audit committee does not have confidence that the XBRL and HTML versions contain exactly the same information
Many filers use external providers to map and generate their XBRL and HTML quarterly (10-Q) and annual (10-K) filings. Others bring the process in-house and produce the documents themselves. Information in the XBRL
format will not render the same as the HTML human-readable format, meaning that reading the the human-readable XBRL will not expose the errors.
As the SEC reviews XBRL submissions, they are telling some filers that their XBRL is either incomplete or inaccurate, and are requiring a restated XBRL filing of the Form 10-Q/A or Form 10-K/A.
Determining ExposureFailure to gain reassurance that potential quality or content issues have been identified and addressed can put your company at risk, even though the SEC has not mandated external audit of the XBRL. The first step to protecting your organization is to advise audit committee members of the issues and the potential implications (which could include a restatement). The next step is to speak with all internal or outsourced
Common XBRL Filing Errors ■ Printed information does not match
what was filed electronically
■ Printed information contains incorrect statements
■ Additional facts in the XBRL version are missing in the HTML version (or vice versa)
■ Unnecessary extensions
■ Excessive definition of extensions, resulting in de facto additional disclosures
■ Incorrect selection of taxonomy elements
■ Use of noncurrent taxonomy elements (deprecated)
■ Incorrectly negated facts
■ Incorrect dimensions
■ Calculations that do not calculate
■ Mismatched labels
■ Incorrect dates
■ Mismatched fact types (for example, percentage-type facts tagged as ratios or string-type elements)
www.crowehorwath.comAudit | Tax | Advisory | Risk | Performance
XBRL logo is a registered trademark of XBRL International Inc.
Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2013 Crowe Horwath LLP
providers to confirm independent review is part of the process for generating filings. And a final step to consider is commissioning an independent review of existing filings to identify exposure and avoid future misstatements.
Avoiding the Worst-Case ScenarioCrowe Horwath LLP can perform an independent review of your XBRL filings to identify potential issues and provide actionable guidance to resolve risks that could result in an SEC query or a request to refile an updated version. Our specialists use state-of-the-art tools and processes intended to streamline the review process and deliver cost-effective results within your timetable.
We can perform an AUP (agreed upon procedures) review, conduct an internal audit of XBRL and associated processes, and provide other services tailored to meet your specific needs. Our goal is to help you satisfy management and the audit committee that the risks associated with your XBRL filings are under control.
A Crowe XBRL assurance review offers independent assurance of compliance supported by our proven expertise in delivering high-quality results for audit committees, boards, stakeholders, and external auditors.
Contact InformationFor more information on Crowe risk services including an XBRL assurance review, contact:
Daniel Roberts Director, Crowe Horwath Global Risk Consulting, London +44.203.178.6835 [email protected]
Rich Kloch Partner, Crowe Horwath LLP 216.623.7533 [email protected]
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