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The Current State of XBRL Reporting
PILONGO, MARIA VHENA V.
BSA 4-13
October 2005• US Banking
regulators have required quarterly “call reports” to be filed in XBRL
April 2005• The SEC began a
voluntary financial reporting program that allows registrants to supplement their required filings with exhibits using XBRL
September 2006• The SEC
announced its new electronic reporting system to receive XBRL filings called IDEA (Interactive Data Electronic Application)
May 2008• The SEC issued
rules requiring large publicly held companies to adopt XBRL by December 15 to meet financial reporting requirements
XBRL – Reengineering FinancialReporting
The Current State of XBRL Reporting
• Comparable developments to encourage or require XBRL have taken place internationally.
• Since early 2003, the Tokyo Stock Exchange has accepted XBRL information.
• In 2007, the Canadian Securities Administrators (CSA) established a voluntary program to help the Canadian marketplace gain practical knowledge in preparing, filing, and using XBRL information. Regulators in China, Spain, the Netherlands, and the United Kingdom are requiring certain companies to use XBRL.
• In addition, the use of XBRL will facilitate fulfillment of legal requirements stipulated in the Sarbanes-Oxley Act, which was passed in response to widespread concern and skepticism about financial-reporting standards. In particular, XBRL can play a role in facilitating earlier reporting of financial statements required under SOX legislation.
CONTROLLING THE FRS
Potential Risks to the FRS
A defective audit trail
Unauthorized access to the
general ledger
GL accounts that are out of balance
with subsidiary accounts
Incorrect GL account balances because of
unauthorized or incorrect journal
vouchers
Controlling the FRS
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COSO framework for control activities
Transaction Authorization
.. more
www.amirauditor.co.ph
COSO framework for control activities
Transaction Authorization
.. more
www.amirauditor.co.ph
Amir Auditor’s Browser
http://www.amirauditor.co.ph/
Amir Auditor
COSO Internal Control Issues
• Transaction Authorization• Segregation of Duties• Access Controls• Accounting Records• Independent Verification
INTERNAL CONTROL IMPLICATIONS OF XBRL
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Taxonomy Creation
Taxonomy Mapping Error
Validation of Instance Documents
Controlling the FRSInternal Control Implications of XBRL
Internal Control Implications of XBRL• Taxonomy Creation. Taxonomy may be generated incorrectly, which
results in an incorrect mapping between data and taxonomy elements that could result in material misrepresentation of financial data.
• Taxonomy Mapping Error. The process of mapping the internal database accounts to the taxonomy tags needs to be controlled.
• Validation of Instance Documents. As noted, once the mapping is complete and tags have been stored in the internal database, XBRL instance documents (reports) can be generated.
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