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The impact of electronic business reporting on audit and assurance A new challenge for the audit profession WCOA 2006, Workshop 2.1.1, November 15, 2006. Jan Pasmooij RE RA RO Chair Assurance Working Group XBRL Int. Chair XBRL Netherlands Member International Steering Committee XBRL Int. - PowerPoint PPT Presentation
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Jan Pasmooij RE RA ROChair Assurance Working Group XBRL Int. Chair XBRL NetherlandsMember International Steering Committee XBRL Int.Manager ICT Knowledge Center Koninklijk NIVRAProgram Director Postgraduate Curriculum IT-Auditing, Erasmus University, RotterdamChair International Innovation Network
The impact of electronic business reporting on audit and assuranceA new challenge for the audit profession
WCOA 2006, Workshop 2.1.1, November 15, 2006
Program The current reporting model Issues of technology – XBRL Risk involved Audit and assurance issues Scenarios for the use of interactive data
The impact of the future reporting model on the assurance standards
Proposals for assurance framework for electronic business reporting
Call to action
Current reporting model
Information- systems
Banks
Chambersof
Commerce
Governments
Regulators
Analysts
Shareholders
Manual inputManual input
Preparing process
FinancialStatement
Local
US
IFRS
GAAP
NL
Information- systems
Manual inputManual input
US
IFRS
XBRLpreparingprocess
XBRLGAAP Taxonomies
ExtensionTaxonomy
Banks
Chambersof Commerce
Governments
Regulators
Analysts
Shareholders
FinancialStatements
XBRL
Instance-document
Reporting based on XBRL
The current reporting model based on XBRL
Information- systems
Banks
ChambersOf
Commerce
Governments
Regulators
Analysts
GAAP Taxonomies
Shareholders
Manual inputManual input
Local
US
IFRS
tPreparingprocess
FinancialStatements
XBRL
Instance-document
Risks involved
With data in electronic format we need specific
controls for: Identification Integrity Authenticity
Audit and assurance issues The current auditing standards are providing no guidance
how to provide assurance on information in electronic format
Current audit opinion is focusing on document level (fair view)
Instance document is a dataset, presentation via a style sheet, so no fair view??
So we need assurance on data-level?? We have no taxonomy for the audit opinion or guidance
how to connect the opinion to an instance document, could be the FS
No requirements yet for integrity and authenticity of instances documents
No guidance yet about signing audit opinions and validations of the signature
Subject matter: Financial StatementsIn paper format Identifying data (Entity) Data
Classification / Grouping Disclosures Layout / Presentation Page numbers Graphics --
In XBRL format Identifying data (Entity) Data Tags
Disclosures -- -- -- Taxonomy references ??
Local
US
Information- systems Users
Manual inputManual input
Preparingprocess
FinancialStatements
The current audit opinion on Financial Statements is based on ISA 700, 701, 705 or 706. The audit opinion states that the financial statements give a “True and fair view or presented fairly, in all material respects, …………..”
The current financial audit and opinion is based on the ISA’s 100 – 999 “Audits of Historical Financial Information”.
IFRS
GAAP
Financial Statements on paper
Information- systems Users
Manual inputManual input
FinancialStatements
Users
XBRLpreparingprocess
NL
US
IFRS
XBRLInstance-document
New ISA 80x or 30xx. The opinion should states that the data are derived from the Financial Statements of ….. are the same as
GAAP Taxonomies
Preparingprocess
Local
US
IFRS
GAAP
Sc. : Traditional FS converted to XBRL format
Information- systems Users
Manual inputManual input
NL
US
IFRS
XBRLInstance-document
XBRL
preparingprocess
A specific ISA 70x for expressing an opinion on “Financial Statements” in XBRL format
XBRL Taxonomies
Sc. : FS in XBRL format only
Information- systems Users
Manual inputManual input
Users
NL
US
IFRS
XBRLInstance-document
XBRL
Preparingprocess
RenderedFinancial
Statements
A combined audit opinion about the quality of the data and the data presented being derived from a dataset in XBRL format using a specific style sheet, could be the traditional FS.
Renderingprocess
Sc. : FS in XBRL format only with rendered FS
XBRL Taxonomies
Information- systems Users
Manual inputManual input
NL
US
IFRS
XBRLInstance-document
XBRL
preparingprocess
A specific ISA 30xx for an Assurance Engagements to provide a conclusion on data in XBRL format
XBRL Taxonomies
Sc. : Regulatory or Government filing
Information- systems Users
Manual inputManual input
NL
US
IFRS
XBRLInstance-documentXBRL
preparingprocess
A specific ISA 30xx for an Assurance Engagements to provide a conclusion on the XBRL preparing process
XBRL Taxonomies
Sc. : Assurance on XBRL preparing process
Call to action Recognition by auditors and users of the issues
addressed Collect user views about assurance IFAC / IAASB take ownership of the assurance
issues IFAC/IAASB should develop a long term strategy
with regard to XBRL beyond the promulgation of immediate standards
AWG and XBRL Int. are gladly willing to help
